Shell, Codexis in biofuels agreement

Royal Dutch Shell (NYSE: RDS), based in the Hague, the Netherlands, announced plans to invest in biofuels with a stake in Redwood City, Calif.'s Codexis.

Shell said it would work with the biotechnology company to develop enzymes that can be used to manufacture biofuels.

Terms of the investment were not disclosed.

"Breaking down and converting alternative, non-food bio material into high quality fuels for transport is complex," said Graeme Sweeney, Shell exec. VP of Future Fuels and C02.

"Processing efficiently at scale, in terms of both cost and C02 production, is challenging. This exciting research work into new powerful enzymes for more efficient conversion and better biofuels is part of Shell accelerating its drive to make next-generation biofuels a commercial reality."

The agreement covers five years of research collaboration, focusing on adapting enzymes to improve the conversion of a range of raw materials into high-performance fuels.

Shell said Codexis will also assist the company in developing the next generation of biofuels as it explores a number of non-food bio materials, new conversion processes and alternative fuel products.

"Codexis' proven biocatalytic technology provides a powerful discovery pathway for development of next generation biofuels from renewable resources," said Alan Shaw, Codexis president and CEO.

"In the first year of our collaboration, we have demonstrated the ability to solve complex technical challenges critical to successful biofuels development and commercialization."

Shell said it has worked with Codexis on biofuels since November 2006, and positive early results, including achievement of milestones ahead of schedule, led to this broader collaboration.

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