Royal Dutch Shell plc (The Hague, Netherlands; www.shell.com) and its subsidiaries and Iogen Corp. (Ottowa, Canada; www.iogen.ca) today announced an extended commercial alliance to accelerate development and deployment of cellulosic ethanol.
The terms of the agreement include a significant investment by Shell in technology development with Iogen Energy Corp., a jointly owned development company dedicated to advancing cellulosic ethanol. The arrangement will also see Shell increasing its shareholding in Iogen Energy Corp. from 26.3% to 50%. Shell first took an equity stake in 2002.
The collaboration with Iogen is a key part of Shell’s strategic investment and development programme in biofuels, particularly in “next generation” biofuels using non-food feedstocks. The fuel is made from raw materials, such as wheat straw, and promises to reduce CO2 production by up to 90% compared to conventional gasoline.
Iogen’s first demonstration commercial plant opened in Ottawa 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.