Beta Renewables, Novozymes team up on cellulosic biofuels

Oct 29, 2012 - Danish biotech company Novozymes A/S (CPH:NZYM B) and Italy’s Beta Renewables said Monday they had formed a strategic partnership to commercialise and provide warranty services for cellulosic biofuel solutions.

Novozymes will buy 10% in Beta Renewables, which is a joint venture between the Chemtex division of Italian chemical engineering firm Gruppo Mossi & Ghisolfi and private equity firm TPG. The price will be EUR 90 million (USD 116m) in cash for the stake, marketing fees, intellectual property rights and milestone payments.

Novozymes hopes that the agreement would raise the number of cellulosic biofuel facilities using its services by between 15-25 in the next three to five years, creating annual sales potential of up to DKK 1 billion (USD 173m/EUR 134m).

The deal is expected to be completed by the end of November 2012.

The joint offer will represent a combination of Novozymes’ Cellic enzymes and Beta Renewables’ PROESA engineering and production technology.

(DKK 1 = USD 0.173/EUR 0.134)
(EUR 1 = USD 1.292)

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