Edeniq, a US-based biomaterials and sustainable fuels company, has entered into a cellulosic ethanol-dedicated agreement with agriculture feedstock firm Pacific Ag.

As per the five-year exclusive agreement, the two companies will work together to aid existing corn-based ethanol production facilities and adding cellulosic ethanol production capabilities.

The collaboration is aimed at diversifying feedstock sources, improving production margins in the long-term basis, and to attain the Renewable Fuel Standard 2 (RFS2) target of 36 billion gallons of biofuel production by 2022.

Edeniq president and CEO Brian Thome said that the alliance between the two companies has a potential to further the commercial viability of cellulosic ethanol production in the US.

"By combining Edeniq’s bolt-on production technologies for corn ethanol plants with Pacific Ag’s agricultural biomass supply capabilities, we will provide the best turnkey solution for today’s producers to economically integrate cellulosic production into their existing facilities," added Thome.

Edeniq, citing a report, claimed that US agriculture and forest resources have an annual production capacity of around one billion dry tons of biomass.

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The proposed production is enough to produce biofuels to meet more than one-third of the current demand for transportation fuels, the company added.

Pacific Ag founder and CEO Bill Levy said, "This collaboration agreement brings together two companies at the forefront of solving a big risk factor to commercial production of cellulosic ethanol: getting biomass from the field to the plant with maximum reliability and efficiency and successfully converting that biomass at a low per gallon capital investment for existing production facilities.

"For Pacific Ag, this potential market represents a key additional sector in our strategy to maximize the role of ag biomass in the nation’s energy supply."