POET, DSM form landmark cellulosic ethanol joint venture

Biofuels Digest
Jim Lane January 24, 2012

Two titans form a monster JV, starting out with a $250M investment. How big, how fast could it grow?

In Iowa, Poet has teamed with Dutch-based Royal DSM to create a 50/50 joint venture called Poet-DSM Advanced Biofuels that will produce cellulosic ethanol and license the technology to other plants in the U.S. and globally.

DSM and POET will each hold a 50% share in the joint venture, which will be headquartered in Sioux Falls, South Dakota. The initial capital expenditure by the joint venture in Project Liberty will amount to about $250 million.

“We are going to make advanced biofuels a reality by 2013, said DSM CEO Feike Sijbesma. “Everyone is talking about advanced biofuels. Now, we are no longer talking, we are getting this done. It’s two leaders, with one shared vision, who will be first movers in a highly attractive, high-growth market.”

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