Shell invests in green fuel
9 May 2002
The Royal Dutch/Shell Group has purchased an equity stake in Iogen Energy Corporation, a bioethanol technology company. The US$29 million investment will enable the Canadian based company to develop a commercial-scale biomass to ethanol plant.
Unlike conventional fuel ethanol, a high-octane alcohol produced from the fermentation of sugar derived from the starch in grains such as corn and wheat, bioethanol is made from the fermentation of sugars derived from the plant fibre in renewable feedstocks such as wood and straw.
Iogen claims that, compared with gasoline, ethanol made from plant fibre releases over 90% lower carbon dioxide emissions - a greenhouse gas that contributes to climate change.
In certain countries for example, Sweden, USA and Brazil, ethanol is already blended into gasoline, but bioethanol potentially offers a more economic and sustainable blending component.
On March 25, Iogen Corporation was awarded a three year, $2.7 million cost-shared research contract from the Government of Canada for the development of improved cellulase enzymes for bioethanol production.
The funds are to be used to improve the efficiency of the enzymes that are used to break down plant fibre into fermentable sugars that are distilled into bioethanol. The project seeks to achieve a 10 fold improvement in enzyme performance.
The Government of Canada funding partners include Technology Early Action Measures (TEAM) - a component of the Climate Change Action Fund, Natural Resources Canada, and Agriculture Canada.
As a 50/50 cost-shared initiative, Iogen is contributing $2.7 million to the effort, bringing the total research effort to $5.4 million.
