Shell and Iogen announce extended alliance to accelerate a next generation biofuel

17 July 2008

Royal Dutch Shell plc has incresed its stake from 26.3 per cent to 50 per cent in Canadian cellulosic ethanol maker Iogen Energy Corporation, in which Shell first took an equity stake in 2002. In operation since 1974, Iogen is a privately held company located in Ottawa, Canada. 

Iogen specialises in cellulosic ethanol, a fully renewable transportation fuel made from agricultural residue that can be used in today's cars and has been producing cellulosic ethanol at its Ottawa demonstration plant since 2004. Iogen also develops, manufactures and markets enzymes used to modify and improve the processing of natural fibres within the textile, animal feed and pulp and paper industries. 

The two  companies have also announced an extended commercial alliance to accelerate development and deployment of cellulosic ethanol, with Shell "considering" investing in a full-scale commercial ethanol plant based on Iogen's proprietary technology.

Cellulosic ethanol is a second-generation biofuel made from waste, not food crops like corn -widely used in the US to make ethanol - and is much more sustainable over the long-term, as it does not take away land from food crop production, .a constraint on the potential of conventional biofuels.

Also fuel from wastes sources as wheat straw promise to reduce CO2 production by up to 90 per cent compared to conventional fuels.

For Shell its collaboration with Iogen is a key part of its strategic investment and development programme in biofuels, particularly in the 'next generation' biofuels using non-food feedstocks as Shell  businesses also include renewable energy projects including wind, solar and biofuels. Shell is a leader in the development of next generation biofuels, using non-food bio materials, alternative processes and high performance fuels.