By Dow Jones Business News, July 19, 2013, 04:55:00 PM EDT
--DuPont seeks partners for joint ventures in production of cellulosic ethanol
--Company is talking with potential partners in U.S., China, Brazil, Europe, Southeast Asia
--DuPont is investing more than $200 million in cellulosic ethanol plant in Iowa
By Owen Fletcher
Chemical giant DuPont Co. ( DD ) is seeking partners for joint ventures in the production of cellulosic ethanol, a next- generation biofuel, a DuPont official said.
"DuPont would take a minority stake and...we would basically take an active role in setting production up" in the joint ventures, which the company is discussing with parties in the U.S., Southeast Asia, China, Brazil and Europe, Jan Koninckx, DuPont's business director for biorefineries, said in an interview this week.
He declined to name potential partners but said interested parties include fuel companies and agribusinesses.
Ethanol made from corn kernels drove the expansion of the U.S. ethanol industry starting in the mid-2000s, as a federal mandate required increasing amounts of the biofuel to be blended into motor fuel.
Ethanol producers at the time hoped future growth could be driven by cellulosic ethanol, made from other biomass such as the stalks of corn plants, since the next-generation fuel satisfies another part of the federal renewable fuels mandate. But development of cellulosic ethanol has lagged the pace once expected, and little of it is now being produced.
Wilmington, Del.-based DuPont is investing more than $200 million to build a cellulosic ethanol plant in Nevada, Iowa, that will produce ethanol from corn-plant residue left in fields after farmers harvest their grain. DuPont expects the facility to open next year.
The plant will be profitable based on its production of 30 million gallons of ethanol a year, but it is also meant to demonstrate the use at full scale of DuPont's cellul
Chemtex inks long term supply agreement for US ethanol facility
EBR Staff Writer
Published 19 July 2013
Chemtex International, a US-based biofuel company, has inked today a long term supply agreement with Murphy Brown for its Cellulosic Ethanol facility, Project Alpha, in Clinton, North Carolina.
As per the terms of the agreement, Murphy will provide energy crops and residues grown on the company's six thousand acres of land for the plant estimated to produce twenty million gallons of cellulosic ethanol.
The proposed crops will be grown on acreage that is not typically used for grain production and would represent the support of the supply chain for the planned Chemtex biorefinery, the company stated in a statement.
The supply agreement is expected to commence following the financial closure for the planned facility.
Murphy Brown government relations and public affairs VP Don Butler said that the company is delighted to partner with Chemtex to bring Cellulosic Ethanol to Eastern North Carolina.
"The production of these feedstocks will be a natural complement to livestock production in the state and will bring new opportunities for farmers large and small," added Butler.
"This project will demonstrate to policymakers that their focus should be on encouraging these American-made next-generation biofuels that are produced without consuming foodstuffs."
Chemtex is further planning to increase the supply through contracting additional acreage over the next few months.
Chemtex supply chain development director Matt Harrod noted: "It's a privilege to be working with Murphy Brown and is representative of the support we have received in North Carolina. It's a great first step in filling out our supply needs and we are looking forward to contracting with additional farmers in the area."