Novozymes has entered into a collaboration agreement with Brazil’s largest sugarcane crusher, Raízen Energia S/A. As part of the agreement, Novozymes will supply enzyme technology to Raízen’s first commercial-scale cellulosic ethanol plant in Brazil, scheduled to be operational by end 2014. The plant will be a bolt-on facility to Raízen’s Costa Pinto sugarcane mill in the state of São Paulo and will have the capacity to produce 40 million liters of cellulosic ethanol a year from sugarcane bagasse and straw. The agreement also provides for Novozymes to supply enzyme technology to Raízen’s second cellulosic ethanol plant, should such a plant be constructed.

To support Raízen in its efforts to advance cellulosic ethanol, Novozymes will develop enzyme technology optimized for Raízen’s process. Furthermore, Novozymes intends to establish new enzyme-manufacturing capacity in Brazil. The exact size, location and investment budget for this enzyme-manufacturing facility are not yet determined and will depend on the level of estimated demand for enzyme technology in Brazil.

“This first plant developed by one of the world’s largest sugarcane ethanol producers marks an important step in the commercialization of cellulosic ethanol in Brazil,” says Thomas Videbæk, Novozymes’ Executive Vice President of Business Development. "We look forward to sharing the journey with Raízen and enabling this exciting development for Brazil through the delivery of world-leading enzyme technology.”

The agreement does not have any impact on Novozymes’ financial guidance for 2013.