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Shell Invests in Green Fuel Technology
Shell Invests in Green Fuel Technology
Published 05-08-02
Submitted by Shell Canada Limited
OTTAWA, Ontario - Shell Oil Products (Shell) announced today that it has purchased an equity stake in Iogen Energy Corporation, a world-leading bioethanol technology company.
The US$29mln investment will enable the Canadian based company to develop more rapidly the world's first commercial-scale biomass to ethanol plant.
Duncan Macleod, Manager, Portfolio Development, Shell Global Solutions International, says: "This is another positive development for Shell. Bio-ethanol, when blended with gasoline, is one of a range of environmentally friendly fuels Shell is exploring as it has the potential to significantly reduce greenhouse gas emissions of vehicles.
"Bioethanol can become commercially viable, and we will be using our skills in fuel production and plant operations with Iogen's globally recognised technology to reduce the cost of future production. This work will be channelled through Shell's technology business, Shell Global Solutions.
"Jeff Passmore, Iogen's Executive Vice President adds: "Shell is a leader in the field of sustainable development and in producing clean fuels. We are delighted that after an extensive global search they decided to invest in our company. At Iogen we believe bioethanol has the opportunity to deliver the most cost-effective and consumer friendly way to reduce greenhouse gas emissions."
Unlike conventional fuel ethanol, a high-octane alcohol produced from the fermentation of sugar derived from the starch in grains such as corn and wheat, bioethanol is made from the fermentation of sugars derived from the plant fibre in renewable feedstocks such as wood and straw. Compared with gasoline, ethanol made from plant fibre releases over 90 percent lower carbon dioxide emissions - a greenhouse gas that contributes to climate change. In certain countries for example, Sweden, USA and Brazil, ethanol is already blended into gasoline, but bioethanol potentially offers a more economic and sustainable blending component.
1. The figure for a 90% reduction in greenhouse gas emissions was the conclusion of "Scenarios of US Carbon Reductions Potential Impacts of Energy Technologies by 2010 and Beyond" prepared by Interlaboratory Working Group on Energy-Efficient and Low-Carbon Technologies for the Office of Energy Efficiency and Renewable Energy, US Dept of Energy September 1997.
2. Iogen Energy Corporation (part of the Iogen Corporation) is a privately owned Canadian company with 100 employees that owns and operates a full-scale biotechnology facility for the development, manufacture and marketing of industrial enzymes. Iogen Energy Corporation, now the world leader in bioethanol technology, owns a $35 million bioethanol demonstration plant, the only one of its kind in the world.
