The companies agreed to terms that will see them collaborate on joint projects to design, build and operate commercial cellulosic ethanol plants using Enerkem technology in specified geographic areas.

The first plant location has been secured within Canada. A second plant is also in development, according to the firms. Enerkem is also building a commercial scale cellulosic ethanol demonstration plant in Westbury, Quebec.

Enerkem’s technology converts biomass such as sorted municipal solid waste and urban wood residues into cellulosic ethanol and other biofuels. It reportedly eliminates more than two tonnes of greenhouse gases per tonne of residues used as feedstock.

Bob Gallant, president and CEO of GreenField Ethanol, said: We are excited to work with Enerkem to make cellulosic ethanol a commercial reality in Canada.