Iogen begins delivery of Shell’s 180,000 litre purchase of cellulosic ethanol

[Bruce Nunnally]

Ottawa, Canada – 25 September 2008 – Following last July’s announcement of an extended commercial alliance with Royal Dutch Shell plc (“Shell”), Iogen today announced it has shipped the first 100,000 litres (26,417 gallons) of an initial 180,000 litre (47,550 gallons) cellulosic ethanol order from Shell.

The fuel, produced from wheat straw at Iogen’s Ottawa demonstration facility, is being purchased by Shell for use in upcoming fuel applications. Iogen, which produced its first cellulosic ethanol in 2004, says it views the current purchase as the first of many opportunities for Shell and Iogen to jointly showcase the technical and commercial viability of cellulosic ethanol.

“The sale of this fuel reinforces the new commercial alliance between Shell and Iogen announced this summer,” says Iogen Executive Vice President Jeff Passmore. “It is part of our focus on accelerating the deployment of next generation biofuels.”

In July, 2008, Shell announced a significant investment in technology development with Iogen Energy Corporation, a jointly owned development company of Shell and Iogen’s that is dedicated to advancing cellulosic ethanol. The arrangement also saw Shell increase its shareholding in Iogen Energy Corporation from 26.3% to 50%. Shell first took an equity stake in 2002. Iogen’s cellulosic ethanol is made from agriculture residues such as cereal straw and corn cobs and stalks.

Advanced, Renewable Biofuel That Can Be Used In Today's Cars

Cellulosic ethanol is a renewable, advanced biofuel that can be used in today’s cars. It is one of the most cost effective ways to reduce greenhouse gas emissions and gasoline use in road transport, and in this regard can deliver benefits similar to improved vehicle efficiency.

Cellulosic ethanol and conventional (grain based) ethanol are both ethanol products that can be easily integrated into the existing fuel distribution system. The primary difference between the two types of ethanol products is that conventional fuel ethanol is derived from grains such as corn and wheat. Cellulosic ethanol is made from the non-food portion of renewable feedstocks such as cereal straws and corn stover. With the Iogen process, the lignin in the cellulosic ethanol can be used to generate electricity, which in turn can be utilized to run the plant.

[Texas Jim]

With this precess, I don't have QUITE as much objection to ethanol.