Novozymes Partners in Latin America, India

Enzyme producer Novozymes (NVZ.L) has made three separate announcements regarding new business initiatives.

Novozymes is a leading cleantech company listed on the 2009 SB20 List.

Sugarcane Waste in Latin America

Novozymes announced a research partnership with Cetrel, the largest provider of environmental solutions for the manufacturing industry in Latin America, to turn sugarcane waste into green energy.

Using Cetrel’s know-how in waste-stream treatment and Novozymes’ biotech expertise, the partners aim to enable sugar and ethanol production plants in Brazil to turn bagasse, the waste from sugarcane production, into biogas using enzymes. The biogas can be used to produce electricity for production facilities, and surplus electricity can be sold to the market through the electric grid.

“Our agreement with Cetrel is perfectly aligned with our vision to develop a bio-based society, where biorefineries convert agricultural residues and waste into energy, chemicals, and other materials, thereby substituting fossil fuels. The project also offers strong technical and commercial synergy with our efforts on advanced biofuels,”, says Thomas Videbæk, Executive Vice President, Novozymes.

Sugarcane bagasse is a potentially abundant source of energy for Brazil. According to estimates, bagasse could meet 20% of Brazil’s energy consumption by 2020. Today, bagasse is often discarded or burned in power plants, but more energy and value could be derived by converting it into advanced biofuel and biogas.

A separate research partnership with Braskem, the largest petrochemical company in Latin America, will focus on developing large-scale production of polypropylene from sugarcane.

Polypropylene is a plastic used in a wide range of everyday products, from food containers, drinking straws, and water bottles to washing machines, furniture, and car bumpers. It is the second most widely used thermoplastic with a global consumption in 2008 of 44 million metric tons. The market is estimated to be US$ 66 billion, with an annual growth rate of 4%.

Today, polypropylene is primarily derived from oil, but Braskem and Novozymes want to develop a green alternative based on Novozymes’ core fermentation technology and Braskem’s expertise in chemical technology and thermoplastics. Initial development will run for at least five years.

“Braskem was the first company in the world to produce a 100% certified green polypropylene on an experimental basis. The partnership with Novozymes will further boost Braskem’s technology development and be a key step in the company’s path to consolidate its worldwide leadership in green polymers, all leveraged by Brazil’s competitive advantages within renewable resources,” says Bernardo Gradin, CEO of Braskem.

Cellulosic Ethanol in India

Novozymes is also working with Praj Industries (PRAJIND.BO), a biofuel company in India, to optimize the enzymatic hydrolysis processes and the use of enzymes in the production of advanced biofuel.

The two companies have worked together for several years within conventional biofuels.

“We have been working with various agri-residues, including sugarcane bagasse, corn cobs, straw, wood chips, and grasses. Our progress in cellulose-to-ethanol processing combined with the experience of Novozymes in this area is a significant development which will enable a significant reduction in the cost of enzymes for the production of cellulosic ethanol,” Pramod Chaudhari, Chairman, Praj Industries said.

PRAJ is an Indian company involved in bioethanol, biodiesel, and brewery plants and related wastewater treatment systems as well as process plant & equipment for customers worldwide.

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