Thursday, August 5, 2010

Danisco backs Novozymes 2nd-gen biofuel cost perspective

COPENHAGEN Thu Mar 18, 2010 11:19am EDT Related News UPDATE 3-Danisco ups guidance after Q3 profits riseThu, Mar 18 2010Danisco backs Novozymes" 2nd-gen biofuel cost viewThu, Mar 18 2010Danisco turns to snakes, spiders for potent enzymesWed, Mar 10 2010

COPENHAGEN (Reuters) - Danish food ingredients and enzymes maker Danisco "agrees fundamentally" with rival enzymes producer Novozymes" view of the costs of producing second-generation bioethanol, Danisco"s chief executive said.

Novozymes and Danisco last month launched new enzymes for producing second-generation biofuels -- fuels made from plant waste rather than food crops -- and Novozymes said then that fuel production costs could be less than $2 per gallon.

Novozymes also said in mid-February that enzyme costs for cellulosic ethanol are now down to $0.50 per gallon.

"We are talking about the $2 range -- 50 cents on enzymes costs," Danisco Chief Executive Tom Knutzen told analysts in a conference call on the group"s third-quarter results.

"We are basically saying what another big industry player is also saying, and we fundamentally agree," he said in response to a question about what he thought of Novozymes" view of second-generation bioethanol production costs.

Knutzen said that Danisco enjoyed a competitive advantage in the business through its joint venture with Dupont in helping keep down capital costs of building plants for second-generation biofuels.

"So at least we have the feeling that we are certainly on par and with a likelihood that we are ahead to come up with the best commercial offering to the market before too long," he said.

(Reporting by John Acher)

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