Emeryville, Calif.-based Amyris Biotechnologies is taking its technology south, teaming up with Brazilian ethanol distributor Crystalsev to commercialize advanced renewable fuels made from sugarcane including a diesel, jet fuel and gasoline.

Amyris said the first product, a renewable diesel that it said works in today's engines, should hit the market in 2010.

"By securing a significant supply of the most sustainable feedstock and collaborating with our world renowned partners Crystalsev and Santelisa, we now have the ability to take our pioneering technology out of the lab and rapidly scale production toward supplying the needs of the worldwide renewable fuels market," said John Melo, CEO of Amyris.

Amyris said Santelisa Vale, an ethanol and sugar producer in Brazil and majority owner of Crystalsev, has contracted to provide two million tons of sugarcane crushing capacity to the new venture.

Amyris said it would hold a majority stake in the venture, with Amyris contributing its technology platform and Crystalsev handling commercialization of the fuels.

Last September, Amyris received $70 million in Series B funding for its biofuel development (see Amyris pulls in $70M for unique biofuel).

The company's investors include DAG Ventures, Khosla Ventures, Kleiner Perkins Caufield & Byers and TPG Biotech.

Amyris said the new venture would open a research and development headquarters in Campinas, Brazil, in June, which will house a renewable fuels pilot facility that is expected to be operational in 2009.