Royal Dutch Shell has extended its collaboration with biotechnology company Iogen Energy Corporation in order to speed up the development of a second generation biofuel made from cellulosic ethanol.
Shell will make a “significant investment” into the development programme under the terms of the agreement, as well as raising its holding in the company from 26.3 per cent to 50 per cent.
Iogen specialises in the production of cellulosic ethanol, a renewable road fuel made from agricultural residue rather than food crops, which emits 90 per cent less carbon dioxide than traditional fuel.
Dr. Graeme Sweeney, executive vice president future fuels and CO2 at Shell, said: “We have come a long way together already on this particular technology pathway for sustainable biofuel and we will be working ever closer to meet the technical and commercial challenges facing larger scale production.”
