Novozymes nets $28.4m tax credit to advance biofuels production
11 Jan 2010
Copenhagen – Biotechnology company Novozymes has received an Advanced Energy Manufacturing Tax Credit of $28.4 million from the Obama Administration for the construction of its new enzyme manufacturing facility in Blair, Nebraska. The facility, which will produce enzymes used to make advanced biofuels, will create more than 100 green jobs for the state.
Novozymes said it is investing $160-200 million in the construction of the facility in Nebraska and applied for the credit in September 2009. The blending facility at the site became operational as of November 2009 and is currently shipping enzymes to customers globally. The facility is expected to be fully operational in mid-2012.
The award is under of the American Recovery and Reinvestment Act. In order to foster investment and job creation in clean energy manufacturing the Act included a tax credit for investments in manufacturing facilities for clean energy technologies. A total of $2.3 billion in tax credits is being allocated for investments in 183 manufacturing facilities for clean energy products across 43 US states.
Novozymes’ tax credit is dependent on the production of advanced biofuels and would benefit the company in the shape of reduced tax payments. The benefit could be up to $18 million in total after tax. It would become available from 2012/2013 and received over a couple of years.
“We believe our selection for this tax credit is a reflection of the tremendous potential of advanced biofuels to create green jobs and contribute to meaningful reduction of greenhouse gases in the near-term,” said Adam Monroe, president of Novozymes North America. “Novozymes applauds the continued support of the Obama Administration to further the development of clean energy technologies like advanced biofuels.”
With over 700 products used in 130 countries and over 6,000 patents, Novozymes develops technology to improve industrial performance and safeguard global resources. This ranges from removing trans fats in cooking, to advancing biofuels. Its core business is industrial enzymes, microorganisms, and biopharmaceutical ingredients, which are developed via in-house projects, strategic alliances, and acquisitions.
The company employs over 5000 people in research, production and sales around the world are committed to shaping business today and our world tomorrow. Novozymes is quoted on the OMX Nordic exchange Copenhagen A/S.
