Iogen: Cellulosic ethanol from the Great White North

Cellulosic ethanol pioneer Iogen is currently converting 40 tons of wheat straw per day into ethanol at a demonstration facility, prompting this quote from Elizabeth May, Executive Director of the Sierra Club Canada:

"Iogen has figured out how to weave gold out of straw."

Rumpelstiltskin metaphors aside, it's a statement that's only marginally hyperbolic. To whit, consider the company's recent investors (all figures in USD):

• Goldman Sachs: $30 million
  
• Petro Canada: $24.7 million
• Royal Dutch Shell: $46 million

The funding will be used to expand the company's commercialization of their technology. Interesting to note: this does NOT include building more facilities. Rather, the company is going to concentrate on what it knows best: licensing their technology and patented enzymes to ethanol producers. Given the explosion in plant construction in the American Midwest, there's going to be no shortage of potential customers.

Established in 1974, Iogen has an history in developing enzymes for commercial use. In addition to fuels, the company addresses enzymatic needs in sectors including animal feeds , textiles , and pulp and paper business. The company first began working with cellulostic ethanol in the 90's, and now it appears the work is paying off.

Strong financial backing from both institutional and industry investors, broad industry expertise and experience, and a low overhead business model combine to suggest that Iogen will continue to play Rumpelstiltskin in the alternative fuel markets.