Canada-based biofuels firm Ensyn Corporation and Brazilian forest products producer Fibria Celulose have signed a joint venture to produce cellulosic liquid fuels and chemicals in Brazil.
Additionally, Fibria has agreed to invest about $20m in Ensyn, resulting in a significantly placed renewable liquid fuels producer.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The transaction is expected to close in October 2012, wherein Fibria will own 6% stake in Ensyn and an option to invest more.
Fibria is engaged in the production of pulp and fiber in Brazil, whereas Ensyn, together with its affiliates, created the proprietary Rapid Thermal Processing (RTP) technology.
RTP technology is used in the conversion of wood and non-food biomass into renewable liquid fuels and chemicals.
Ensyn has developed Renewable Fuel Oil (RFO), a multi-purpose renewable fuel designed to replace petroleum in fuel applications.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataFibria chief executive officer Marcelo Castelli said that Ensyn is now the company’s key partner in cellulosic liquid fuels development.
"Our mission is to leverage our expertise in growing fiber and market position in Brazil to develop a value-added, non-food renewable fuels business that complements our global leadership in pulp production.
"We believe Ensyn and its technology platform, together with Fibria s capabilities, will allow for the generation of a powerful biofuels growth business over the coming years," Castelli added.
Ensyn chairman and CEO Dr Robert Graham stated, "Fibria s significant expertise, resource base and strong local presence are a perfect fit for Ensyn as a joint venture partner in this major market."
