Abengoa Bioenergy invests in Dyadic's enzyme R&D
Abengoa is the world's second largest bioenergy producer, with operations in Europe and Latin America. Its subsidiary Abengoa Bioenergy R&D (ABRD) has now entered a three-year research and development agreement and a stock purchase agreement worth US$10 million with Dyadic International, a biotechnology company that develops enzymes for the production of cellulosic ethanol [*.pdf].
Dyadic will use the proceeds from this private sale to fund its R&D obligations under the R&D agreement, which has as its objective the development of a cost-effective enzyme production system for commercial application in Abengoa Bioenergy’s bioethanol (cellulosic ethanol) production process. The R&D agreement, which does not become effective until the private sale closes, calls upon Dyadic to use its proprietary technologies to develop one or more enzyme mixture manufacturing systems customized to ABRD’s proprietary biomass substrates.
The viability of ligno-cellulosic or 'second generation' ethanol, which is based on breaking down cellulose via a biochemical (enzymatic) process that releases the sugars contained in it, depends on the efficiency and costs of the enzymes used. If the price of enzymes can be brought down (or efficiency considerably increased), then it will be possible to manufacture ethanol from a much broader range of biomass streams (such as agricultural residues, corn stover, stems, grasses, and so on.)
Dyadic's main focus for the development of a potent enzyme is based on patented strains of the fungal microorganism Chrysosporium lucknowense (picture).
The R&D agreement contemplates that Dyadic will perform both foundational research of general application to the cellulosic ethanol field and specific applications research for the achievement of the goals of ABRD’s program. Under the terms of the R&D agreement, if Dyadic successfully develops one or more enzyme manufacturing systems for Abengoa Bioenergy, Dyadic may be entitled to receive license fees, technology transfer fees and royalties on ethanol sales. Other financial terms were not disclosed:
ethanol :: biomass :: bioenergy :: biofuels :: energy :: sustainability :: cellulosic :: enzymes :: biotechnology ::
“Abengoa Bioenergy is considered to be the second largest ethanol producer in the world and a leader in the fields of both corn-derived and cellulose-derived ethanol production. We are extremely pleased to partner with Abengoa Bioenergy to leverage Dyadic’s patented C1 platform enzyme technology to enable commercial development of biomass derived ethanol,” said Glenn E. Nedwin, Ph.D., Chief Science Officer for Dyadic.
“We recognized that Dyadic’s enzyme technology, especially in the field of cellulosic ethanol, is state-of-the-art,” said Gerson Santos-Leon, R&D Director of Abengoa Bioenergy. “Abengoa Bioenergy is looking forward to working with Dyadic in the development of large-scale enzyme production systems and manufacturing processes for use in the production of abundant low cost fermentable sugars from biomass, with initial focus on cellulosic ethanol production.”
“We are very excited to enter into this partnership with Abengoa Bioenergy, a recognized leader in the field of cellulosic ethanol, and are also pleased to welcome ABRD as a strategic investor, research collaborator and Dyadic shareholder,” commented Dyadic’s President and CEO, Mark Emalfarb. “Abengoa Bioenergy is a visionary company and an important first partner for Dyadic for its Biorefineries Business. Additional partners will stand to benefit not only from access to Dyadic’s technologies specific to their area of interest but also from the core technology development program that is fundamental to efficient production of ethanol, other biofuels, polymers and other chemicals from biomass, thereby reducing our dependence on foreign oil.”
Javier Salgado, Abengoa Bioenergy´s President & CEO, added: “Dyadic is recognized as a leader in innovation and technology in the enzymes production field. This investment and the R&D collaboration with Dyadic represent a key building block in the Abengoa Bioenergy Biomass Program, particularly in the area of specialized enzymes.”
Pursuant to the parties’ purchase agreement, the Company has agreed to file a registration statement with the U.S. Securities and Exchange Commission covering the resale of the shares issued at closing, as well as the additional shares, if any, issuable after the closing.
The securities offered in the private sale were not registered under the Securities Act of 1933, as amended (the "Act") or any state securities laws, and may not be offered or sold in the United States absent registration, or an applicable exemption from registration, under the Act and applicable state securities laws.
Article continues
Dyadic will use the proceeds from this private sale to fund its R&D obligations under the R&D agreement, which has as its objective the development of a cost-effective enzyme production system for commercial application in Abengoa Bioenergy’s bioethanol (cellulosic ethanol) production process. The R&D agreement, which does not become effective until the private sale closes, calls upon Dyadic to use its proprietary technologies to develop one or more enzyme mixture manufacturing systems customized to ABRD’s proprietary biomass substrates.
The viability of ligno-cellulosic or 'second generation' ethanol, which is based on breaking down cellulose via a biochemical (enzymatic) process that releases the sugars contained in it, depends on the efficiency and costs of the enzymes used. If the price of enzymes can be brought down (or efficiency considerably increased), then it will be possible to manufacture ethanol from a much broader range of biomass streams (such as agricultural residues, corn stover, stems, grasses, and so on.)
Dyadic's main focus for the development of a potent enzyme is based on patented strains of the fungal microorganism Chrysosporium lucknowense (picture).
The R&D agreement contemplates that Dyadic will perform both foundational research of general application to the cellulosic ethanol field and specific applications research for the achievement of the goals of ABRD’s program. Under the terms of the R&D agreement, if Dyadic successfully develops one or more enzyme manufacturing systems for Abengoa Bioenergy, Dyadic may be entitled to receive license fees, technology transfer fees and royalties on ethanol sales. Other financial terms were not disclosed:
ethanol :: biomass :: bioenergy :: biofuels :: energy :: sustainability :: cellulosic :: enzymes :: biotechnology ::
“Abengoa Bioenergy is considered to be the second largest ethanol producer in the world and a leader in the fields of both corn-derived and cellulose-derived ethanol production. We are extremely pleased to partner with Abengoa Bioenergy to leverage Dyadic’s patented C1 platform enzyme technology to enable commercial development of biomass derived ethanol,” said Glenn E. Nedwin, Ph.D., Chief Science Officer for Dyadic.
“We recognized that Dyadic’s enzyme technology, especially in the field of cellulosic ethanol, is state-of-the-art,” said Gerson Santos-Leon, R&D Director of Abengoa Bioenergy. “Abengoa Bioenergy is looking forward to working with Dyadic in the development of large-scale enzyme production systems and manufacturing processes for use in the production of abundant low cost fermentable sugars from biomass, with initial focus on cellulosic ethanol production.”
“We are very excited to enter into this partnership with Abengoa Bioenergy, a recognized leader in the field of cellulosic ethanol, and are also pleased to welcome ABRD as a strategic investor, research collaborator and Dyadic shareholder,” commented Dyadic’s President and CEO, Mark Emalfarb. “Abengoa Bioenergy is a visionary company and an important first partner for Dyadic for its Biorefineries Business. Additional partners will stand to benefit not only from access to Dyadic’s technologies specific to their area of interest but also from the core technology development program that is fundamental to efficient production of ethanol, other biofuels, polymers and other chemicals from biomass, thereby reducing our dependence on foreign oil.”
Javier Salgado, Abengoa Bioenergy´s President & CEO, added: “Dyadic is recognized as a leader in innovation and technology in the enzymes production field. This investment and the R&D collaboration with Dyadic represent a key building block in the Abengoa Bioenergy Biomass Program, particularly in the area of specialized enzymes.”
Pursuant to the parties’ purchase agreement, the Company has agreed to file a registration statement with the U.S. Securities and Exchange Commission covering the resale of the shares issued at closing, as well as the additional shares, if any, issuable after the closing.
The securities offered in the private sale were not registered under the Securities Act of 1933, as amended (the "Act") or any state securities laws, and may not be offered or sold in the United States absent registration, or an applicable exemption from registration, under the Act and applicable state securities laws.
Article continues
Saturday, October 28, 2006
Wood stoves used in developing world are big culprits in climate change
Researchers have found that smoke produced by these stoves, which are traditionally used for cooking and heating in developing countries, contains twice as many soot particles as laboratory experiments had previously indicated. When released into the atmosphere, the black, noxious particles — which are darker than those produced by grassland or forest fires — absorb light and increase atmospheric temperatures.
"They can absorb energy and keep it in the Earth's system when it would otherwise escape," says lead author Tami Bond of the University of Illinois at Urbana-Champaign, US. Lack of knowledge about the characteristics and quantities of emissions from wood stoves is a major contributor to uncertainties in global emission estimates for particulate material.
Bond and colleagues measured emissions from cooking stoves in Honduras using a portable monitoring system. In a previous study Bond had established that burning firewood produces 800,000 metric tons of soot worldwide a year:
biomass :: bioenergy :: biofuels :: energy :: sustainability :: developing world :: climate change :: gelfuel :: biogas ::
By comparison, diesel vehicles generate about 890,000 metric tons of soot a year. Both sources together contribute 10 per cent of the soot emitted annually into the atmosphere.
Distributing well-designed stoves with chimneys and training people in their use "may be an effective method of mitigating global climate change, and can improve the health of the users", says Christopher Roden, also of the University of Illinois at Urbana-Champaign and one of the study's authors.
However, the most effective way to reduce climate-warming particles, says Bond, would be replacing the wood with cleaner fuels. "These include liquefied petroleum gas, but also alternatives like biogas, managed charcoal and processed briquettes."
El Salvador, Guatemala, Honduras and Nicaragua are the main consumers of wood in Latin America, according to the World Conservation Union. In Honduras, more than 80 per cent of families cook over open wood fires.
The authors estimate that around 400 million wood stoves are used daily by more than 2 billion people worldwide. The study was published online last month (27 September) in Environmental Science & Technology.
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