Novozymes and Shengquan Group finalize agreement

Novozymes, a Danish biotech company, announced that it had signed an agreement with the Chinese chemical firm, Shengquan Group, for the production of cellulosic ethanol. The agreement was finalized after China’s President Hu Jintao visited Denmark. When production at Shengquan’s US$100 million cellulosic ethanol facility begins in July, the company will become the first in the world to manufacture the product on a commercial scale. Shengquan said it will market the ethanol as an industrial solvent and production will be cost competitive with conventional ethanol because the company will use corncob cellulose, a waste product sourced from its current feedstock production. Novozyme’s enzymes will be used to convert cellulose into higher-value sugars which can be fermented to produce ethanol. (June 15, 2012)