Shell, Iogen to accelerate commercialization of cellulosic ethanol

Royal Dutch Shell plc and Iogen Corp. announced on June 4 a further investment in Iogen Energy, their jointly owned subsidiary, for the purpose of accelerating the commercial deployment of Iogen Energy’s process for making cellulosic ethanol from agricultural residue.

As part of the ongoing joint development agreement between Shell, Iogen Corp. and Iogen Energy, Shell has made a significant incremental commitment to fund research and development activities at Iogen Energy until mid-2012.

Iogen Energy is currently operating its Ottawa demonstration plant on a continuous basis using the proven R7 technology release. Over the past 12 months, Iogen Energy has produced more than 170,000 gallons of cellulosic ethanol from wheat straw using its R7 technology. Shell’s additional funding will be used to develop and demonstrate Iogen Energy’s next two major technology releases, R8 and R9, which will significantly reduce the capital and operating costs per gallon of cellulosic ethanol.

The collaboration with Iogen Corp. in Iogen Energy is a key part of Shell’s strategic investment and development program in next generation biofuels using nongrain feedstocks. The fuel is made from raw materials such as wheat straw and promises to reduce CO2 emissions by greater than 80 percent compared with gasoline.

“Shell remains committed to addressing today’s energy challenges through sustainable, advanced biofuels that take CO2 out of the transport fuels sector and diversify supply over the next 20 years. We believe accelerating the commercialization of cellulosic ethanol will help us to achieve that goal,” says Luis Scoffone, vice president of alternative energies at Shell.

“We are extremely pleased with this additional investment from Shell, an energy leader with a 30-year history of biofuels development and investment. Iogen Energy is positioned for successful commercialization of its world class technology as we work toward meeting the demand for a low carbon transportation fuel,” says Brian Foody, CEO of Iogen Corp.

SOURCE: IOGEN CORP.