Chinese Companies, Novozymes, GTA partner on cellulosic development

May 21, 2010

BY Luke Geiver

Posted May 27, 2010

Cofco, a leading Chinese producer and supplier of processed agricultural products, and Sinopec, the world's third largest oil refiner out of China, have partnered with Novozymes. The three companies have signed a Memorandum of Understanding, moving the three towards commercialization of cellulosic biofuel in China. A 3 MMgy corn stover-based plant will be completed in the third quarter of 2011 by Cofco and Sinopec in China. Novozymes, who first partnered with the Chinese companies in 2009, will provide the enzymes.

"In 2009, we forged this partnership in China to develop biofuel from agricultural waste; today, we are one step closer to producing commercial quantities," said Michael Christiansen, president of Novozymes China. "With gasoline prices hovering around $4 per gallon in China, companies across the country are reaffirming their commitment to investing in development of clean, alternative fuel sources."

China's supply of biomass exceeds 700 million metric tons annually, and a 2009 study done by Novozymes shows China can reduce gasoline consumption, dependence on imported petroleum by 10 percent and abate 90 million tons of CO2 emissions by using biofuels. By 2020, the number of cars in China is expected to jump from 130 million today, to over 200 million.

During an advanced biofuels forum between the U.S. and China this week, Cofco and Novozymes also partnered with a startup company at the Purdue Research Park in West Lafayette, Ind. Green Tech America Inc. (GTA), formed by Nancy W.Y. Ho, will provide their yeast-based cellulosic technology. "For GTA to sign a license agreement with two giant companies in the world, it means they will use (our) yeast in their production of cellulosic ethanol," said Ho. "That alone is a great event by GTA by all means." GTA's Saccharmoyces yeast has also been tested by ADM and Iogen. The engineered yeast from GTA is also environmentally friendly, avoiding the use of toxic and expensive chemicals such as antibiotics to maintain the plasmids containing the cloned genes in the yeast.

The forum was hosted by the National Energy Administration of the People's Republic of China, the U.S. DOE and the USDA.

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