INTERVIEW-UPDATE 1-Novozymes to halve bioethanol enzyme price

Tue Feb 24, 2009 8:12am GMT
 
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* Says can halve bioethanol enzyme price to 50 cts/gln fuel

* Sees bioethanol production price at $2.50/gln next year

* Sees U.S. missing 100 mln gln cellulosic target in 2010

(Adds details, quotes)

By Gelu Sulugiuc COPENHAGEN, Feb 24 (Reuters) - Denmark's Novozymes A/S (NZYMb.CO) will halve the price of enzymes used in the production of second-generation ethanol to 50 cents per gallon of fuel by next year, company officials said on Tuesday.

This will help cut the production price of the fuel, which is made from crop waste, fast-growing grasses and wood chips, to $2.50 per gallon from $3.50 per gallon now, said Poul Ruben Andersen, marketing director for biofuel at Novozymes.

"The other 50 cents will come from innovation and efficiency in the overall process of pre-treatment and ethanol fermentation," Andersen said.

The environmentally friendlier version of the biofuel avoids the blame for food price inflation attached to ethanol made from corn. But it is harder to make as it requires breaking down tough cells walls into sugars which can be fermented into fuel.   Continued...

 

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