Royal Dutch Shell plc (RDSA.L) and Iogen Corporation announced an extended commercial alliance to accelerate development and deployment of cellulosic ethanol.
The terms of the agreement include a significant investment by Shell in technology development with Iogen Energy Corporation, a jointly owned development company dedicated to advancing cellulosic ethanol.
The arrangement will also see Shell increasing its shareholding in Iogen Energy Corporation from 26.3% to 50%. Shell first took an equity stake in 2002.
Iogen's first demonstration commercial plant opened in Ottawa in 2004. Shell is considering investing in a full-scale commercial cellulosic ethanol plant and is contributing to Iogen's detailed feasibility and design assessment work.
Commenting on Shell's increased investment, Dr. Graeme Sweeney, Shell Executive Vice President Future Fuels and CO2 said "This is a strong statement that Shell is committed to accelerating the development of cellulosic ethanol in collaboration with Iogen."
"We are excited to see this expanded partnership", said Brian Foody, CEOr of Iogen Corporation. "This transaction sets the stage for successful large scale cellulosic ethanol production."
