Amyris, Inc. (NASDAQ:AMRS), a leading renewable chemicals and fuels company, and ETH Bioenergia, a leading producer of ethanol, electric energy and sugar controlled by Odebrecht S.A, announced today that they have signed a memorandum of understanding for the formation of a joint venture to produce Biofene®, Amyris’s renewable farnesene.
Under the agreement, the joint venture would be able to access up to two million tons of sugarcane crush capacity per year at one of ETH’s greenfield mills in Brazil. The joint venture will be controlled by ETH, and Amyris will have exclusive marketing rights for the Biofene produced at the facility. By leveraging ETH’s renowned skills on biomass production and industrial performance and Amyris’s technology, the parties expect to be able to begin production by 2014.
“ETH has been at the leading edge of sugarcane ethanol production in Brazil and now, with our technology, Amyris will be able to market renewable products made from Biofene produced at one of ETH’s new mills,” said John Melo, CEO of Amyris. “Through this joint venture with ETH, and other agreements already announced in Brazil, Amyris now has access to 15 million tons of sugarcane crush capacity for our production.”
“Innovation is at the core of ETH’s strategy. ETH is committed to becoming a leader in the production of sugarcane-based renewable fuels, and Amyris brings a technology platform and the marketing channels to create value to ETH’s value-chain in Brazil,” said Jose Carlos Grubisich, CEO of ETH Bioenergia. “ETH is firmly committed to expanding the production of ethanol and high value-added products from sugarcane, combining competitiveness and sustainability.”
ETH generates clean and renewable energy through its nine state-of-the-art units and constantly invests in research to increase its productivity and develop new applications for ethanol and sugarcane-based products. The company has invested R$ 6 billion and is committed to investing an additional R$ 2 billion, taking all its units to their maximum production capacity, generating 3 billion liters of ethanol and 2,700 GWh of electric energy by 2013.
The joint venture with ETH represents Amyris’s sixth production agreement at locations spanning three continents. Amyris is scaling its Biofene production in Brazil, Europe and the United States through various production arrangements.