DSM and POET to make advanced biofuels a reality by 2013
(Thomson Reuters ONE) -
Royal DSM, the global Life Sciences and Materials Sciences company, and POET,
LLC, one of the world's largest ethanol producers, today announce a joint
venture to commercially demonstrate and license cellulosic bio-ethanol, the next
step in the development of biofuels, based on their proprietary and
complementary technologies. POET-DSM Advanced Biofuels, LLC, is scheduled to
start production in the second half of 2013 at one of the first commercial-scale
cellulosic ethanol plants in the United States.
The two partners will produce cellulosic ethanol from corn crop residue through
a biological process using enzymatic hydrolysis followed by fermentation. The
first commercial demonstration of the technology will be at Project Liberty,
which is currently being constructed adjacent to POET's existing corn ethanol
plant in Emmetsburg, Iowa. The initial capacity is expected to be 20 million
gallons in the first year, growing to approximately 25 million gallons per year.
POET-DSM Advanced Biofuels, LLC, intends to replicate and license the technology
to additional plants to be built at the other 26 corn ethanol facilities in
POET's network and license it to other producers in the United States and the
rest of the world. The U.S. Environmental Protection Agency (EPA) estimates that
in the United States as many as 350-400 new bio-refineries will have to be
constructed by 2022 to meet the volume requirement of 16 billion gallons/year of
cellulosic bio-ethanol under the Renewable Fuel Standard.
DSM and POET will each hold a 50% share in the joint venture, which will be
headquartered in Sioux Falls, South Dakota. The initial capital expenditure by
the joint venture in project Liberty will amount to about $250 million. The
closing of the joint venture is subject to regulatory approvals and other
customary closing conditions.
The joint venture is expected to be profitable in the first full year of
production (2014) and to deliver substantial revenues with above-average EBITDA
contribution in the medium/longer term.
Both partners in the joint venture bring deep expertise and experience in
different areas of cellulosic bio-ethanol. They also share the same vision for a
bio-based economy.
Jeff Broin, POET founder and CEO, said: "This joint venture brings together two
companies leading the transition from a fossil-based economy to a bio-based
economy. The partnership has set an ambitious goal: to make cellulosic bio-
ethanol competitive with corn ethanol, which is the most competitive liquid
transportation fuel on the market today. We believe that the joint venture
positions us well to meet our ambitious cellulosic ethanol production goals."
Feike Sijbesma, CEO/Chairman of the DSM Managing Board, commented: "This
cooperation is a milestone in realizing DSM's strategy. By leveraging the unique
opportunities in Life Sciences and Materials Sciences we can contribute our
heritage of over a century in both biotechnology and chemistry to this joint
venture with a biofuels leader. Together we shall deliver the key to unlock the
cellulosic bio-ethanol opportunity. As the world is facing unprecedented
challenges with a growing population making an ever bigger claim on the planet's
resources, we need to accelerate the transition to a bio-based economy and this
joint venture is a significant step in that direction."
As one of the world's largest producers of corn ethanol, POET has been actively
developing cellulosic bio-ethanol for more than a decade. In November, 2008, the
company started operating a cellulosic bio-ethanol pilot plant at its research
center in Scotland, South Dakota. For the past five years, POET has been working
with farmers to bale, transport and store corn crop residue-the cobs, leaves,
husks and some stalk left in the field after the grain harvest.
DSM already has a unique position in the development of cellulosic ethanol as
the only company offering both yeast and enzyme solutions to increase conversion
rates to make the technology commercially viable. DSM has vast experience in
scaling up biotechnological processes and an extensive global footprint and
relationships to help accelerate technology adoption in key markets.
Cellulosic bio-ethanol from corn crop residue represents a large opportunity. If
the technology is replicated at POET's network of 27 existing corn ethanol
plants, it could produce up to one billion gallons of cellulosic bio-ethanol per
year.
In an analysis of the Renewable Fuel Standard, the U.S. EPA projected 7.8
billion gallons of cellulosic bio-ethanol coming from corn crop residue by
2022. Beyond that, the U.S. Departments of Energy and Agriculture have estimated
that more than one billion tons of biomass is available in America that could
produce enough cellulosic bio-ethanol to replace a third of the country's
gasoline use.
Conference calls
Today, 23 January 2012, DSM and POET will hold a conference call for the media
from 2.00-3.00pm EST / 20.00-21.00 hrs CET which can be accessed by dialing
(800) 683-4564 (US only) or +1 (913) 312-2904 with access code 845366#
Tomorrow, 24 January 2012, DSM will hold a conference call for investors and
analysts from 09.30-10.30 CET which can be accessed by dialing +31 10 29 44 271
or +44 203 365 3207. A replay can be accessed as of approximately 10.30 CET by
dialing +31 10 29 44 210 with access code 1194829#
About POET-DSM Advanced Biofuels, LLC
POET-DSM Advanced Biofuels, LLC, is a 50/50 joint venture between Royal DSM and
POET, LLC. Based in Sioux Falls, South Dakota, the company is a cooperative
effort of two innovators that provides the key to unlocking the opportunity of
converting corn crop residue into cellulosic bio-ethanol. Built on the strengths
of both companies the joint venture has a critical mission: to make cellulosic
bio-ethanol competitive with corn ethanol, the most competitive renewable liquid
transportation fuel on the market today. Drawing on the deep expertise and
experience of POET and DSM in different areas of converting cellulosic biomass
into ethanol, POET - DSM Advanced Biofuels will have its first commercial-scale
plant co-located with POET's biorefinery in Emmetsburg, Iowa. Based on this
plant the JV will globally license an integrated technology package for the
conversion of corn crop residue to cellulosic bio-ethanol. More
information:www.poetdsm.com
About POET
POET, one of the world's largest ethanol producers, is a leader in biorefining
through its efficient, vertically integrated approach to production. The 25-
year-old company has a production capacity in excess of 1.6 billion gallons of
ethanol and 9 billion pounds of high-protein animal feed annually from its
network of 27 production facilities. POET also operates a pilot-scale cellulosic
bio-ethanol plant, which uses corn cobs, leaves, husk and some stalk as
feedstock, and expects to commercialize the process in Emmetsburg, Iowa. For
more information, visithttp://www.poet.com.
DSM - Bright Science. Brighter Living.(TM)
Royal DSM N.V. is a global science-based company active in health, nutrition and
materials. By connecting its unique competences in Life Sciences and Materials
Sciences DSM is driving economic prosperity, environmental progress and social
advances to create sustainable value for all stakeholders. DSM delivers
innovative solutions that nourish, protect and improve performance in global
markets such as food and dietary supplements, personal care, feed,
pharmaceuticals, medical devices, automotive, paints, electrical and
electronics, life protection, alternative energy and bio-based materials. DSM's
22,000 employees deliver annual net sales of about ? 9 billion. The company is
listed on NYSE Euronext. More information can be found atwww.dsm.com
For more information:
DSM Corporate Communications DSM Investor Relations
Herman Betten Hans Vossen
tel. +31 (0) 45 5782017 tel. +31 (0) 45 5782864
fax +31 (0) 45 5740680 fax +31 (0) 10 4590275
e-mailmedia.relations(at)dsm.com e-mailinvestor.relations(at)dsm.com
POET Corporate Communications
Nathan Schock
tel. +1 605 965 6428
tel. +1 605 759 4802
e-mail nathan.schock(at)poet.com
Press release-pdf:
http://hugin.info/130663/R/1579570/493072.pdf
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originality of the information contained therein.
Source: DSM N.V. via Thomson Reuters ONE
[HUG#1579570]
Unternehmensinformation / Kurzprofil:
Datum: 23.01.2012 - 19:01 Uhr
Sprache: Deutsch
News-ID 106840
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