Fibria partners with Ensyn to form a biofuels JV in Brazil
Fibria makes a $20m equity investment in the US renewable liquid fuels producer Ensyn as it plans to develop into liquid biofuel business.
Brazilian pulp producer Fibria has established a strategic alliance with the US-based renewable liquid fuels producer Ensyn Corporation. The alliance includes a $20m equity investment in Ensyn, which will provide Fibria with a 6% ownership in the company. In addition, Fibria and Ensyn plan to establish a 50/50 joint venture for the production of cellulosic liquid fuels and chemicals in Brazil.
According to the companies involved, the goal of the JV is to create a major producer or renewable liquid fuels from cellulosic feedstock by combining the strengths of both parties. Fibria has industry-leading expertise in fiber production as well as significant fiber resources in Brazil, Ensyn said. Ensyn has developed the commercially-proven RTP technology (Renewable Thermal Processing) to convert wood and other non-food biomass into renewable liquid fuels and chemicals and will provide the technological platform for the production of cellulosic biofuels, Fibria stated.
The transaction is expected to be closed by the end of October, including the signing of all documentation and payment.
Besides the 6% voting rights ownership, Fibria's equity investment in Ensyn provides the pulp producer with rights to invest an additional $10m and increase its share in Ensyn to 9%, the company explained.
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