Second Generation Ethanol Plant

BRUSSELS - Mar 14/07 - SNS -- Holland's Royal Nedalco intends to build a second-generation biofuel plant with an annual production capacity of 200 million liters of bioethanol at Sas van Gent.

Expected to come on line in 2008, the plant, costing around Euros 150 million to build, is said to be the first to achieve second-generation biofuel production on an industrial scale.

The new plant will use a patented yeast developed by Nedalco that can convert xylose (a C5 monosaccharide) into bioethanol. Previously Nedalco could only convert the C6 monosaccharides into ethanol.

The feedstock containing xylose will be purchased from the domestic or the world market. The main share of the feedstock for the plant will probably be lignocellulosic waste products from the food processing industry, though fast growing trees such as poplar can also be used as a source.

In a related announcement, Nedalco announced an agreement to license technology to Mascoma Corp., a market leader in the United States in the field of lignocellulosic ethanol commercialization, and to explore collaborative research efforts between the companies. Nedalco has previously concluded agreements with the American companies SunOpta Inc., a specialist in biomass pretreatment, and Dyadic, a leading enzymes business.

Managing director Ger Bemer said there is tremendous interest in the technology, "Americans in particular are knocking at our door. In the United States the President and Congress have recently set a target of increasing bioethanol production fivefold by 2017. Lignocellulosic ethanol is going to have a significant part to play in this.

"But if we want to continue exporting our technology in the future, then we must remain an interesting technology partner. That means that Nedalco must itself gain experience of the large-scale production of sustainable biofuels. This investment shows that we have that ambition."

To strengthen its leading research position Nedalco is taking the initiative with targeted alliances. The starting point in this regard is that new partners can make a material contribution to existing knowledge and technology in the field of lignocellulosic ethanol production.

In a related announcement, Nedalco announced today an agreement to license technology to Mascoma Corp., a market leader in the United States in the field of lignocellulosic ethanol commercialization, and to explore collaborative research efforts between the companies.

Nedalco has previously concluded agreements with the American companies SunOpta Inc., a specialist in biomass pretreatment, and Dyadic, a leading enzymes business. In the Netherlands Nedalco works closely with Wageningen University, TU Delft and Bird Engineering. Nedalco has set up a joint venture with these latter two parties that looks after the development of the Dutch inventions.