Novozymes, Dedini in sugar-based biofuel MoU

COPENHAGEN, July 16 Fri Jul 16, 2010 8:30am BST

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COPENHAGEN, July 16 (Reuters) - World no.1 industrial enzymes maker Novozymes (NZYMb.CO) said on Friday it and Brazil's Dedini would join ranks in the development of biofuel based on sugarcane residue.

The Danish firm said it and Dedini, a global leader in equipment for the sugar and ethanol sector, had signed a partnership deal "aiming at continuing to develop a technological route to produce cellulosic ethanol in Brazil".

Cellulosic ethanol, or second-generation ethanol, is made from wood, grasses or the non-edible parts of plants -- which overcomes problems associated with making fuel from food crops.

"Considering the demand for ethanol in Brazil and the amount of bagasse available, there is considerable opportunity for further growth in this market," Novozymes Chief Executive Steen Riisgaard said in an emailed statement.

"The objective of this partnership is to develop a process using the enzymatic hydrolysis route from sugarcane residues. This would result in the implementation of a demonstration plant, integrated into sugarcane mill refineries," the firm said.

Brazil is the world's largest producer of sugarcane, crushing more than 600 million tons per year, from which 27 billion liters of ethanol is produced, Novozymes said.

Novozymes in February commercially launched the first enzyme for the production of second-generation fuels.[ID:nDKT004853]

(Reporting by Anna Ringstrom)

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