Fibria will invest about $20m in Ensyn as part of the transaction to take a 6% stake in the Canadian company and have an exercisable option to make further investments.
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 commented 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.
