Developer of bio-based chemicals Cobalt Technologies and the Solvay Group have agreed to create a joint demonstration facility in Brazil for the development of bio-butanol.

The two companies are looking to construct commercial-scale bio-refinery using Cobalt’s technology to convert Brazilian bagasse and other local non-food feedstock into bio n-butanol in Latin America.

Cobalt Technologies chief executive officer Bob Mayer said that the agreement puts the two companies on the path to commercialization.

"Our corporate values and goals are aligned and Rhodia’s experience in the global chemical markets and long history of success in Latin America position us well for success," added Mayer.

Work on the demonstration facility is expected to begin in August 2012 and will move to a mill site in early 2013 for integration testing.

Operational testing at the demonstration plant is expected to be completed by Mid-2013.