The terms of the agreement include a significant investment by Shell in technology development with Iogen Energy, a jointly owned development company dedicated to advancing cellulosic ethanol. The arrangement will also see Shell increasing its shareholding in Iogen Energy from 26.3% to 50%. Shell first took an equity stake in 2002.
The collaboration with Iogen is reportedly a key part of Shell’s strategic investment and development program in biofuels, particularly in next generation biofuels using non-food feedstocks. The fuel is made from raw materials such as wheat straw and is expected to reduce CO2 production by up to 90% compared to conventional gasoline.
Iogen’s first demonstration commercial plant opened in Ottawa, Canada, in 2004. Shell is considering investing in a full-scale commercial cellulosic ethanol plant and is contributing to Iogen’s detailed feasibility and design assessment work.
Graeme Sweeney, Shell’s executive vice president for future fuels and CO2, said This is a strong statement that Shell is committed to accelerating the development of cellulosic ethanol in collaboration with Iogen. We have come a long way together already on this particular technology pathway for sustainable biofuel and we will be working ever closer to meet the technical and commercial challenges facing larger scale production.
