Sugar and ethanol producer, Cosan Limited (CZZ - Analyst Report) formed a joint venture with California-based Amyris Inc.(AMRS), pursuant to their term sheet entered in June 2010. The joint venture will primarily look into the development, production and commercialization of renewable base oils worldwide.
Base oils are the prime ingredients for the manufacture of lubricants oils, derived from crude oil refining process. Additives are added to base oils to meet certain performance criterion for the manufacture of certain lubricants including engine oils, gear oils, hydraulic oils and turbine oils.
To begin with, the joint venture is likely to source farnesene from Amyris production facilities, and the parties involved would share the marketing and operating costs. Amyris’s synthetic biology platform will be applied to create base oils from plant sugar sources by modifying yeast to produce targeted hydrocarbon molecules.
Amyris is an integrated renewable products company involved in genetically modifying microorganisms to serve as living factories through the application of its industrial synthetic biology. The company conducts its production operation in Brazil through its subsidiary Amyris Brasil S.A., and its distribution capabilities in the U.S. through Amyris Fuels LLC.
Cosan is the largest sugar and ethanol producer in Brazil and ranks third in sugar and fifth in ethanol production in the world. Apart from its core operations, the company is also engaged in energy production from sugarcane bagasse.
With fuel distribution, another Cosan’s business, the company aims to become the third largest distributor in Brazil after the consummation of the recently announced joint venture with Shell International Petroleum Company Limited.
source:zacks
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