Novozymes gets $28.4 million tax credit

January 4, 2010



News release posted Jan. 13, 2010

Novozymes, the world leader in bioinnovation, has received an Advanced Energy Manufacturing Tax Credit of $28.4 million in U.S. dollars from the Obama Administration for the construction of its new enzyme manufacturing facility in Blair, Nebraska. The facility, which will produce enzymes used to make advanced biofuels, will create more than 100 green jobs for the state.

"We believe our selection for this tax credit is a reflection of the tremendous potential of advanced biofuels to create green jobs and contribute to meaningful reduction of greenhouse gases in the near-term," said Adam Monroe, president of Novozymes North America. "Novozymes applauds the continued support of the Obama Administration to further the development of clean energy technologies like advanced biofuels."

The tax credit awarded to Novozymes is part of the American Recovery and Reinvestment Act. In order to foster investment and job creation in clean energy manufacturing the Act included a tax credit for investments in manufacturing facilities for clean energy technologies. A total of $2.3 billion in tax credits is being allocated for investments in 183 manufacturing facilities for clean energy products across 43 states.

Novozymes' tax credit is dependent on the production of advanced biofuels and would benefit the company in the shape of reduced tax payments. The benefit could be up to USD 18 million in total after tax. It would become available from 2012/2013 and received over a couple of years.

Government incentives like this are critical to attracting the necessary private sector investment to ensure the commercialization of advanced biofuels. Novozymes will invest a total of $160 to $200 million in the construction of the facility in Nebraska and applied for the credit in September 2009. The blending facility at the site became operational as of November 2009 and is currently shipping enzymes to customers globally. The facility is expected to be fully operational in mid-2012.

About Novozymes:

Novozymes is the world leader in bioinnovation. Together with customers across a broad array of industries, we create tomorrow's industrial biosolutions, improving our customers' business, and the use of our planet's resources. With over 700 products used in 130 countries, Novozymes' bioinnovations improve industrial performance and safeguard the world's resources by offering superior and sustainable solutions for tomorrow's ever-changing marketplace.

Novozymes' natural solutions enhance and promote everything from removing trans-fats in food, to advancing biofuels to power the world tomorrow. Our never-ending exploration of nature's potential is evidenced by over 6,000 patents, showing what is possible when nature and technology join forces. Our 5,000+ employees working in research, production and sales around the world are committed to shaping business today and our world tomorrow. Read more at www.novozymes.com.

Source: Novozymes

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