World’s first advanced biofuels facility opens

CRESCENTINO, ITALY  - Beta Renewables, a global leader in cellulosic biofuels and part of the Mossi Ghisolfi Group, and Novozymes, the world’s largest producer of industrial enzymes, today marked the official opening in Northern Italy of the world’s largest advanced biofuels facility. Situated in fields outside the city of Crescentino, it is the first plant in the world to be designed and built to produce bioethanol from agricultural residues and energy crops at commercial scale using enzymatic conversion.

“The advanced biofuels market presents transformational economic, environmental and social opportunities, and with the opening, we pave the way for a green revolution in the chemical sector,” says Beta Renewables’ Chairman and CEO, Guido Ghisolfi. “We will continue to commercially expand Beta Renewables’ core technology throughout the world, and we are very confident at this stage given the demand we see around the globe.”

“The opening today presents a leap forward and is truly the beginning of a new era for advanced biofuels,” says Peder Holk Nielsen, CEO of Novozymes. “Here, at this plant, enabled by Novozymes’ enzymatic technology, we will turn agricultural waste into millions of liters of low-emission green fuel, proving that cellulosic ethanol is no longer a distant dream. It is here, it is happening, and it is ready for large-scale commercialization.”

The two companies formed a strategic partnership in October 2012, making Novozymes the preferred enzyme supplier for Beta Renewables’ current and future cellulosic biofuel projects.

The plant uses wheat straw, rice straw and arundo donax, a high-yielding energy crop grown on marginal land. Lignin, a polymer extracted from biomass during the ethanol production process, is used at an attached power plant, which generates enough power to meet the facility’s energy needs, with any excess green electricity sold to the local grid.

At the inauguration, Guido Ghisolfi and Peder Holk Nielsen were joined on the ground for the celebrations by Italy’s Minister for Economic Development, Flavio Zanonato, and representatives from the European Commission, as well as more than 500 global stakeholders.

Stable policy conditions required

With the technology ready at commercial scale, it will be vital to create stable and conducive policy conditions worldwide, to harvest better the vast opportunities in cellulosic ethanol and advanced biofuels.

“Policy makers now need to send clear signals to encourage the necessary investments in advanced biofuels,” says Peder Holk Nielsen. “Stable and predictable blending mandates, incentives for the collection of agricultural residues, and investment support for the first large-scale plants will help move the world substantially in terms of reducing greenhouse gasses, stimulating economies, and providing energy security. Continued reliance on fossil fuels is not viable.”

A recent study by Bloomberg New Energy Finance concludes that transforming agricultural residues into advanced biofuels could create millions of jobs worldwide, economic growth, reduction of greenhouse gas emissions, and energy security by 2030. Government support is, however, vital to accelerate the deployment of next-generation biorefineries.

Cost-competitive technology ready

Beta Renewables’ PROESA™ engineering and production technology alongside Novozymes’ Cellic® enzymes represent the most cost-competitive advanced biofuels platform in existence today. More than $200 million has been invested in research and development of the technology used to produce cellulosic ethanol at the Crescentino facility, since 2011.

“Investors interested in cellulosic ethanol often ask when the technology will be ready at commercial scale,” says Guido Ghisolfi. “PROESA enables customers to produce advanced biofuel at a cost-competitive price relative to conventional biofuels – at large-scale and today. Our complete offering makes cellulosic biofuel projects bankable and replicable. With the world’s first commercial plant up and running here in northern Italy, I very much look forward to an exciting journey of establishing an entirely new, and very promising, industry.”

About Beta Renewables

Beta Renewables is a leader in the field of advanced biofuels and biochemical compounds at competitive costs. It was established at the end of 2011 as a joint venture between Biochemtex, a company of the Mossi Ghisolfi Group, and the U.S. fund TPG (Texas Pacific Group) with a total investment of 250 million Euro (350 million dollars). At the end of 2012, Novozymes became a shareholder of Beta Renewables, with the acquisition of 10 percent of the shares, amounting to 90 million Euros. Beta Renewables owns the PROESA technology, applied to the field of biofuels and chemical intermediates. Beta Renewables manages the plant in Crescentino, the first commercial facility in the world for the production of second-generation ethanol.

About TPG and TPG Biotech

TPG is a leading global private investment firm founded in 1992 with $55.3 billion of assets under management and offices in San Francisco, Fort Worth, Austin, Beijing, Chongqing, Hong Kong, London, Luxembourg, Melbourne, Moscow, Mumbai, New York, Paris, São Paulo, Shanghai, Singapore and Tokyo. TPG has extensive experience with global public and private investments executed through leveraged buyouts, recapitalizations, spinouts, growth investments, joint ventures and restructurings.

TPG Biotech is part of the growth equity and venture investment platform of TPG. With more than $1.3 billion under management, TPG Biotech targets investments in pharmaceutical discovery and development, medical technology, diagnostics, healthcare and pharmaceutical services, life sciences, as well as industrial applications of biotechnology.

About Novozymes

Novozymes is the world leader in bioinnovation. Together with customers across a broad array of industries we create tomorrow’s industrial biosolutions, improving our customers' business and the use of our planet's resources. With over 700 products used in 130 countries, Novozymes’ bioinnovations improve industrial performance and safeguard the world’s resources by offering superior and sustainable solutions for tomorrow’s ever-changing marketplace.

Read more at www.novozymes.com.