DuPont and Danisco Team Up for Cellulosic Ethanol

DuPont is teaming with Genencor (a division of Danisco A/S) to form DuPont Danisco Cellulosic Ethanol LLC. The name is a mouthful, but the partnership is expected to develop a low-cost solution for producing cellulosic ethanol. The eventual market for cellulosic ethanol is estimated to be worth about $75 billion. The two parent companies are ponying up an initial investment of $140 million over the course of three years.

An investment of this size into cellulosic ethanol is nothing but good news. The majority of ethanol research has been done on corn and other biomatter that are all food sources — using these materials may be better for the environment, but it also pushes up the cost of food significantly. But cellulosic ethanol uses non-food sources like sugar cane bagasse and corn stover — the leftovers from food production. Essentially, cellulosic ethanol can be more sustainable because it can be made without removing crops from the food market.

Right now, though, cellulosic ethanol isn’t economically realistic. The DuPont / Danisco partnership will put in the necessary hours to change that, however. As DuPont Chairman and CEO said in the announcement, “By integrating our companies’ strengths and expertise in this new venture, we are significantly increasing the potential to make cellulosic ethanol from multiple non-food sources an economic reality around the world.”

Photo courtesy DuPont Danisco