Commercial Status

Cellulase enzymes are already commercially available for a variety of applications. Most of these applications do not involve extensive hydrolysis of cellulose. For example, the textile industry applications for cellulases require less than 1% hydrolysis. Ethanol production, by contrast, requires nearly complete hydrolysis. In addition, most of the commercial applications for cellulase enzymes represent higher value markets than the fuel market. For these reasons, there is quite a large leap from today's cellulase enzyme industry to the fuel ethanol industry. Our partners in commercialization of near-term ethanol technology are choosing to begin with acid hydrolysis technologies because of the high cost of cellulase enzymes.

Iogen/Petro-Canada Agreement

Petro-Canada, the second largest petroleum refining and marketing company in Canada, signed an agreement with Iogen Corporation in November of 1997 to co-fund research and development on biomass-to-ethanol technology over a period of 12 to 18 months. Petro-Canada, Iogen, and the Canadian government is then funding construction of a plant to demonstrate the process, which is based on Iogen's proprietary cellulase enzyme technology. In April 2004, Iogen announced that it was producing the world's first cellulose ethanol for commercial use¹.

BC International (BCI)

This company will begin operation of their Jennings, LA plant using dilute acid hydrolysis technology. The choice of dilute acid technology is strategic, in that it allows for the eventual addition of enzyme hydrolysis when cellulase production becomes cost-effective. BCI is currently evaluating options for utilizing enzymes². BCI plans to utilize cellulase enzymes in a project partially funded by DOE that will lead to a commercial rice straw to ethanol facility in Gridley, CA.

References

¹"Cellulose Ethanol Is Ready To Go," April 21, 2004 news release, Iogen Corporation.

²Cellulase Enzyme Production on Novel Pretreatment Substrates. U.S. Department of Agriculture Small Business Innovative Research Grant Abstract FY 1998.