Codexis, Raízen to Develop First Generation Ethanol
Redwood City, CA and São Paulo, Brazil - September 27, 2011 - Codexis, Inc. (Nasdaq: CDXS) and Raízen Energia S.A today announced the signing of a joint development agreement to develop an improved first generation ethanol process with enhanced performance economics. Raízen is Brazil`s largest sugar and ethanol producer.
Under the terms of the agreement, Raízen and Codexis will deploy the Codexis CodeEvolverT directed evolution technology platform to improve Raízen`s current process for producing ethanol made from sugar. Raízen produced 600 million gallons of ethanol in 2010. The agreement focuses on a range of targets, including improving performance of yeasts now used in ethanol production. The parties anticipate pilot production at Raizen`s Bonfim mill.
Codexis will retain commercialization rights and Raízen will receive preferential commercial terms. Successful developments under the collaboration will be covered by subsequent agreements. The collaboration may also include development of other products from sugar such as biobased chemicals.
Brazil is the world`s second largest producer and consumer of ethanol, with 2010 production of 7 billion gallons. Brazil is currently importing ethanol as a result of rising demand and lower current-season yields.
"This agreement is very timely, since sugarcane ethanol in Brazil clearly needs to continue improving productivity to achieve expected yields in the years to come. Raízen and Codexis strongly believe that investing in technology is a critical path to achieve this," said Vasco Dias, Raízen Chief Executive Officer.
"We are delighted to announce our first agreement with Raízen. Working together, we expect to quickly improve the performance and cost structure of first generation ethanol, now in use throughout Brazil. We look forward to a productive and long term development partnership." said Alan Shaw, Ph.D., Codexis President and Chief Executive Officer.