Shell in next generation biofuels deal

London - Shell and Iogen Corp. are to accelerate their joint efforts to develop cellulosic ethanol biofuels, under a deal involving a "significant investment" by Shell in Iogen Energy Corp -  the companies' jointly owned development company. Shell is also increasing its shareholding in Iogen Energy from 26.3% to 50%, as part of its strategy to develop next generation biofuels using non-food feedstocks, such as wheat straw.

Iogen's first demonstration commercial plant opened in Ottawa, Canada in 2004. According to Shell, it is considering investing in a full-scale commercial cellulosic ethanol plant and is contributing to Iogen's detailed feasibility and design assessment work for the planned facility.

"This is a strong statement that Shell is committed to accelerating the development of cellulosic ethanol in collaboration with Iogen," said Dr. Graeme Sweeney, Shell executive vice president Future Fuels and C02. "We have come a long way together already on this particular technology pathway for sustainable biofuel and we will be working ever closer to meet the technical and commercial challenges facing larger scale production."

Iogen, a privately owned company based in Ottawa, claims to be a leading biotechnology firm specialising in cellulosic ethanol-based fuel from agricultural residue that can be used in today¹s cars. The company also supplies enzymes used to modify and improve the processing of natural fibres within the textile, animal feed and pulp & paper industries.