Chemtex, TPG found Beta Renewables, invest €250M, to scale up cellulosic ethanol

In Italy, Gruppo Mossi and Ghisolfi through its subsidiary Chemtex, has founded BETA RENEWABLES, a joint venture with TPG Capital and TPG Biotech to exclusively license Chemtex’s PROESA Technology, enabling production of fermentable sugars from cellulosic biomass; these cost-effective sugars can then be converted into bio-ethanol and/or other chemical products and intermediates.

TPG and M&G are investing total capital of €250 million into BETA RENEWABLES, in which M&G will hold a majority stake. Under the terms of the agreement, M&G will transfer to BETA RENEWABLES the pilot plant in Tortona, Italy and the 40ktpa industrial scale cellulosic ethanol plant currently being constructed in Crescentino, Italy.

The plant is scheduled for start-up at the end of H1 2012 and will be the first industrial facility in the world producing second generation bio-ethanol.

The technology has four key components:  Mr. Ghisolfi spoke about the four main technological breakthroughs that have been developed, including short time, low pressure, low temperature pre-treatment; producing separate streams of C5 and C6 sugars for many uses; finding good ways to balance the ph so that all of the biomass is gently treated; and hydrolyzing quickly with or without the lignin.