In Canada, Ensyn Corporation and Fibria Celulose announced the creation of a strategic alliance between the two companies. This alliance includes the establishment of an equally-owned joint venture for the production of cellulosic liquid fuels and chemicals in Brazil, as well as a US$ 20 million equity investment in Ensyn Corporation by Fibria.
Ensyn’s key renewable liquid fuel, Renewable Fuel Oil, is a multi-purpose petroleum replacement fuel with uses including heating, conversion to transportation fuels and power generation in diesel engines, and is made via the company’s Rapid Thermal Processing technology, which converts wood and other non-food biomass into renewable liquid fuels and chemicals.
The $20 million equity investment by FIBRIA in Ensyn capital provides FIBRIA with ownership of approximately 6% of Ensyn voting shares and the right to nominate one member to Ensyn’s Board of Directors. It also provides FIBRIA certain rights which, if exercised, would allow FIBRIA to invest an additional $10 million and increase its holdings to as much as 9% of Ensyn’s equity capital.
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