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2008 | Amyris and Crystalsev Join to Launch Innovative Renewable Diesel from Sugarcane by 2010
Amyris, the leading innovator of next-generation renewable fuels, and Crystalsev, one of Brazil's largest ethanol distributors and marketers, today announced plans to commercialize advanced renewable fuels made from sugarcane including a diesel, jet fuel and gasoline. The first product, a renewable diesel that works in today's engines, is targeted for commercialization in 2010. Scale-up and testing work to date indicate that this fuel scales more quickly and economically than currently available biofuels, and reduces emissions by 80 percent over petroleum diesel.
Using Amyris' breakthrough technology platform, the new joint venture, Amyris-Crystalsev Pesquisa e Desenvolvimento de Biocombustiveis Ltda, will work with Brazilian sugarcane mills and fuel producers to quickly scale production of the Amyris renewable diesel fuel. Amyris will hold the majority stake in the Amyris-Crystalsev venture, and Crystalsev will hold the remaining stake and contribute commercialization expertise.
Santelisa Vale, the second largest ethanol and sugar producer in Brazil and majority owner of Crystalsev, has contracted to provide two million tons of sugarcane crushing capacity and plans to adopt the new technology beginning at its flagship mill - Santelisa. Santelisa Vale will also provide technical and engineering expertise to accelerate development and scale-up of the Amyris fuel. The Amyris-Crystalsev venture plans to bring other sugar producers into the fold as it launches its diesel fuel and progresses on new products.
"This partnership represents a historic first for the global transportation fuels industry. By securing a significant supply of the most sustainable feedstock and collaborating with our world renowned partners Crystalsev and Santelisa, we now have the ability to take our pioneering technology out of the lab and rapidly scale production toward supplying the needs of the worldwide renewable fuels market," said John Melo, CEO Amyris.
Unlike current biofuels, Amyris renewable fuels are designed to meet or exceed the quality of existing petroleum fuels and be fully compatible with existing fuels infrastructure and engines. They are formulated biologically through sugar fermentation to create hydrocarbons, the same molecular structure found in traditional petroleum fuels. The result is a new kind of renewable fuel that is expected to work in today's automotive and jet engines with no performance trade-offs, to blend at high-levels with other petroleum fuels, and to be fully compatible with existing distribution infrastructure, while offering advantages of significantly reduced emissions.
"With access to this technology, producers of ethanol will have a unique opportunity to expand their fuels business portfolios and create new growth opportunities with a diesel product that our country and the world needs, while offering significant environmental benefits. We are delighted to be working closely with Amyris to bring this promising technology to Brazil," said Rui Lacerda Ferraz, CEO Crystalsev.
As part of the scale up process, this June the partners will open a research and development headquarters in Campinas, a growing region known for its diverse talent and universities and strategically located between Sao Paulo and Brazil's sugarcane region, Ribeirão Preto. The same site will house a renewable fuels pilot facility that is expected to be operational in 2009.
The new fuels can be readily produced in existing ethanol facilities with limited manufacturing changes, which enables rapid adoption and a cost effective platform. Amyris expects to produce its fuels with a wide variety of plant and cellulosic feed stocks over time, and has elected to launch its first product with sugarcane feedstock due to both the environmental benefits of producing fuels from sugarcane and Brazil's world leadership position in alternative fuel production. Amyris-Crystalsev plans to market its renewable fuels worldwide, with initial focus on Brazil and the United States. According to industry analyst estimates, global demand for petroleum diesel is growing at approximately four percent annually and is estimated to exceed 600 billion gallons by 2020. The Brazil diesel market is expected to grow from approximately 45 billion liters in 2007 to over 80 billion liters in 2020.
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