Gevo, a renewable chemicals and next-generation biofuels company, has entered a collaboration agreement with the Malaysian government’s East Coast Economic Region Development Council (ECERDC), Malaysian Biotechnology Corp and the state government of Terengganu to develop a cellulosic biomass isobutanol facility.

Gevo will construct a fermentation facility at the Biorefinery Complex in Kertih, in the state of Terengganu which will be utilised to produce isobutanol from the cellulosic biomass.

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Gevo president and chief operating officer Chris Ryan said the technology for a sustainable cellulosic feedstock is expected to be commercially viable this year, so now is the appropriate time to begin the cellulosic platform.

"Our ambition is to move toward definitive agreements by the second half of 2012 with a target of having a cellulosic plant operational by late 2015 or early 2016," Ryan added.

ECERDC chief executive officer Jebasingam Issace John said, "The establishment of a Gevo facility in East Coast Economic Region Malaysia is further testament to investors’ confidence in the Region and we look forward to facilitating Gevo’s investment in Malaysia."

Gevo is partnering along the supply chain in Malaysia to offer the bio isobutanol at a competitive rate and is also finalising additional partners needed to complete the biomass to isobutanol value chain.

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The collaboration between the partners will offer diversified feedstock, help organise the approach and develop a business plan that is economically advantageous.