The alliance includes the establishment of an equally-owned joint venture for the production of cellulosic liquid fuels and chemicals in Brazil besides a $20m equity investment in Ensyn by Fibria.
The investment will provide Fibria 6% stake in Ensyn besides the right to improve its investment to 9% in the future.
Ensyn developed the proprietary rapid thermal processing technology, used in the conversion of wood and non-food biomass into renewable liquid fuels and chemicals.
Fibria chief executive officer Marcelo Castelli remarked that Ensyn is now the company’s key partner in cellulosic liquid fuels development.
"Our mission is to leverage our expertise in growing fiber and market position in Brazil to develop a value-added, non-food renewable fuels business that complements our global leadership in pulp production.
"We believe Ensyn and its technology platform, together with Fibria s capabilities, will allow for the generation of a powerful biofuels growth business over the coming years," Castelli added.
The transaction is expected to close by the end of October 2012 with Canadian Imperial Bank of Commerce and Deutsche Bank being the financial advisors to Ensys.
