Royal Dutch Shell plc and its subsidiaries (Shell) and Iogen Corporation declared 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 Corporation, a jointly owned development company dedicated to advancing cellulosic ethanol. The arrangement will also see Shell increasing its shareholding in Iogen Energy Corporation 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.

Commenting on Shell’s increased investment, Dr. Graeme Sweeney, Shell Executive Vice President Future Fuels and C02 said “This is a strong statement that Shell is committed to accelerating the development of cellulosic ethanol in collaboration with Iogen. We have come a long way together already on this particular technology pathway for sustainable biofuel and we will be working ever closer to meet the technical and commercial challenges facing larger scale production.”

“We are excited to see this expanded partnership”, said Brian Foody, Chief Executive Officer of Iogen Corporation. “This transaction sets the stage for successful large scale cellulosic ethanol production.”

Tags: Iogen Corporation, Shell