http://media.cleantech.com/3020/novozymes-to-build-new-facility-in-nebraska

Novozymes to build new facility in Nebraska

June 24, 2008


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The plant will produce enzymes for existing corn-based ethanol and later enzymes for cellulosic ethanol production.

Bagsvaerd, Denmark-based Novozymes announced plans to expand its operations with a new facility in Nebraska, saying the plant would help the company meet future demands for enzymes in the ethanol industry.

Novozymes expects to invest $80 million to $100 million in the production facility, to be located on a 30 acre property at the Biorefinery Campus in Blair, Neb., approximately 25 miles north of Omaha.

"Initially the focus of the new plant will be to supply enzymes for corn-based ethanol and enzymes for cellulosic ethanol start-ups," said Peder Holk Nielsen, exec. VP at Novozymes and head of its enzyme business.

"The plant in Blair will be designed for later expansions to ensure Novozymes can meet demands for enzymes for cellulosic ethanol. We are undertaking an unprecedented effort to make these enzymes available by 2010."

Novozymes is controlled by the not-for-profit Novo Nordisk Foundation, which also controls Novo Nordisk, one of the world's leading producers of insulin.

In February, the U.S. Department of Energy named Novozymes as one of four companies that would receive up to $33.8 million in funding over four years for cellulosic ethanol projects (see Four cellulosic ethanol projects to get cash from U.S. DOE).

The other companies getting the grants include the DSM Innovation Center in Parsippany, N.J., part of the Netherlands' DSM (OTC: RDSMY); Palo Alto,Calif.'s Genencor; and San Diego, Calif.-based Verenium (Nasdaq: VRNM).

The projects will focus on developing improved enzyme systems to convert cellulosic material into sugars suitable for the production of biofuels

Novozymes said it expects to break ground on the Nebraska facility in late 2008 with operations beginning in late 2010.