Novozymes seals enzyme supply deal with Shengquan

Jun 15, 2012 - Danish biotech company Novozymes A/S (CPH:NZYM B) today said it had closed a deal to supply its enzyme technology to Chinese Shengquan Group for the production of cellulosic ethanol.

The agreement, first unveiled in April, was finalised on Friday during the visit of China's president Hu Jintao to Denmark.

Shengquan has spent USD 100 million (EUR 79m) on its cellulosic ethanol facility and is due to start production next month, becoming the first company in the world to manufacture the product on a commercial scale, according to the announcement. The Chinese company will market the ethanol as an industrial solvent.

The statement also said that Shengquan's production would be cost-competitive with conventional ethanol because it would use a waste product -- corncob cellulose -- from the company's current production as a feedstock. With the help of Novozymes' enzymes, the cellulose will be converted into higher-value sugars that can be fermented to ethanol.

(USD 1.0 = EUR 0.792)

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