Shell, Cosan close $12B JV – Iogen, Codexis holdings transferred to Raizen

In Brazil, Shell and Cosan closed on their USD $12 billion joint venture to create Raízen, one of the world’s largest ethanol companies with over 2 billion liters annual production capacity, a retail network of 4,500 fuel stations, 24 sugar mills and an installed capacity of 900MW of electric energy from sugar cane bagasse.

Globally biofuels currently meet around 3% of road-transport fuel demand. Shell expects this to rise to about 9% by 2030.

As part of this agreement, Royal Dutch Shell plc has transferred its 15.7% ownership in Codexis  to Raízen with the goal of deploying Codexis’ “super-enzymes” for the faster conversion of plant waste into transport fuels. As a result, Raizen is now Codexis’ largest stockholder. The deal includes part of Shell’s interest in the firm Iogen, which uses enzymes to break down plant waste into ethanol.