Novozymes, which operates its North American headquarters in Franklinton, N.C., is acquiring an ownership stake in Beta Renewables, an Italian firm, and will market, demonstrate and guarantee cellulosic biofuel technology from that company.
The deal is valued at $115 million in cash, marketing fees, intellectual property rights and milestone payments.
Novozymes also will become the preferred supplier of enzymes for use in creating biofuels to Beta Renewables.
The companies announced the deal Monday.
Beta Renewables will include Novozymes enzymes as part of its biofuel process.
“Large-scale commercialization of cellulosic biofuels is taking off, and this is a fantastic opportunity for Novozymes,” said Peder Holk Nielsen, executive vice president at Novozymes. “Beta Renewables is an extremely committed industry front-runner. They are building advanced biofuel facilities all over the world and, by being their preferred enzyme supplier, Novozymes will gain access to significant new business opportunities. We expect Beta Renewables to be able to contract 15-25 new facilities within the next three to five years. The sales potential for Novozymes from these plants could be up to $175 million.”
Beta Renewables operates what the companies say the world’s largest advanced biofuel plant in Italy. It utilizes wheat straw, locally available feedstocks in Italy and what the company calls energy crops.
Novozymes is a global provider of enzymes to biofuel providers.
