Fibria, Ensyn Establish Cellulosic Liquid Fuels Alliance
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Dr. Robert Graham, chairman and CEO of Ensyn Corp., Wilmington, Del., USA, and Marcelo Castelli, CEO of Fibria Celulose S.A., Brazil, this week announced the creation of a strategic alliance between the two companies. The alliance includes the establishment of an equally-owned joint venture for the production of cellulosic liquid fuels and chemicals in Brazil, as well as a $20 million equity investment in Ensyn Corp. by Fibria.
The goal of the Ensyn-Fibria joint venture is to combine the strengths of each party to create a major producer of renewable liquid fuels from cellulosic feedstocks. Fibria, one of the world's leading pulp producers, has considerable industry expertise in fiber production as well as a significant Brazilian fiber resource and a substantial corporate presence in Brazil.
Ensyn and its affiliates have developed the commercially-proven Rapid Thermal Processing™ (RTP) technology, which converts wood and other non-food biomass into renewable liquid fuels and chemicals. Ensyn's key renewable liquid fuel, Renewable Fuel Oil™ (RFO), is a multi-purpose petroleum replacement fuel with uses in many applications, including heating, conversion to transportation fuels, and power generation in diesel engines.
Fibria's $20 million investment will provide Fibria with ownership of approximately 6% of Ensyn and also provides Fibria certain rights, which, if exercised, would allow Fibria to invest additional capital and increase its holdings to as much as 9% of Ensyn. In addition, Fibria will be granted one seat on Ensyn's board of directors.
This transaction is targeted to be closed by the end of October, including the signing of definitive documentation and payment.
Fibria Celulose is the world's top producer of wood pulp, with production capacity of more than 5 million metric tons of pulp per year. Fibria's production is supported by a forest base covering more than 1 million hectares, spread across seven states in Brazil. The company owns and operates three pulp mills in Brazil and also owns 50% of Veracel, a joint-venture with Stora Enso, also in Brazil. Fibria's workforce totals approximately 18,900 professionals.
Ensyn is a producer of liquid fuels and chemicals from non-food biomass. Ensyn bases its production on its RTP technology and has historical production of more than 30 million gal. Ensyn is currently executing a significant build-out of RTP capacity in North America and internationally for the production of Renewable Fuel Oil (RFO), its principal renewable liquid fuel product.
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