The collaboration will be the first step towards commercialization of cellulosic ethanol biofuels in the country.

Reinzen’s investment in Brazil will cover for the development and engineering costs of design a biomass-to-ethanol facility at the Costa Pinto facility owned by Raízen in Piracicaba, São Paulo.

Commenting on the developments Raízen CEO Vasco Dias noted that Iogen has robust, competitive technologies in the cellulosic ethanol business.

"This is a first step in our strategy to make cellulosic ethanol in association with sugar cane production operations. We see tremendous potential for this technology in meeting the world’s growing demand for cleaner and more sustainable fuels," said Dias.

Iogen chairman Brian Foody added, "Large scale commercialization in Brazil will open the door for broader commercialization of our technology."