The agreement will see the Codexis CodeEvolver™ platform implemented in order to upgrade the existing process utilized by Raizen for manufacturing ethanol from sugar cane. Pilot production at Raizen’s Bonfim mill will look to accelerate the some 600M gallons of ethanol (2010) produced by Raizen, addressing key areas like improved yeast performance.
CEO of Raizen, Vasco Diaz, cited the timeliness of the agreement as Brazil begins importing ethanol to satisfy demand which is outstripping currently projected yields for the season. Diaz reaffirmed the commitment by CDXS and his company to helping solve the problem through technological innovation.
The agreement calls for commercialization rights to be retained by CDXS, with Raizen accessing preferential commercial terms and subsequent agreements slated to cover any successful developments that emerge under the current agreement. Interestingly, the agreement also includes the potential for collaborative efforts on other lucrative products like bio-based chemicals and similar sugar-derived offerings.
Today’s news is huge for CDXS and its shareholders as Brazil topped out in second place globally last year (2010) for both production (7B gallons) and consumption of ethanol.
President and CEO of CDXS, Alan Shaw, Ph.D., called the agreement a huge step for both Brazilian ethanol production and the two companies. This initial agreement, according to Shaw, will lay the foundation for the future while granting immediate improvement both to the performance and overall cost structure of first generation ethanol.
Raizen is turning out around 530M gallons of ethanol annually, making them Brazil’s third largest fuels company and with a 4,500 station network and 24 sugar mills, they boast an impressive installed capacity of some 900MW of energy from sugar cane. This is a perfect move for CDXS, opening up substantial territory in a thriving market that has real potential for long-term growth.
For more information on the agreement, the technology and/or on Codexis, Inc., please visit the Company’s website at: www.Codexis.com
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