The joint venture, equally split between the two companies, is to produce cellulosic liquid fuels and chemicals in Brazil. Ensyn produces renewable liquid fuels from wood and agricultural residues. Fibria is stated as having extensive experience in fibre production, and a “significant corporate presence” in the South American country.
Fibria will take hold of six per cent of Ensyn, with the option to extend that investment to as high nine per cent. Fibria will also get a seat on Ensyn’s board of directors.
“We are pleased to establish a key strategic alliance with Fibria,” stated Ensyn CEO Robert Graham.
“Fibria’s significant expertise, resource base and strong local presence are a perfect fit for Ensyn as a joint venture partner in this major market.”
Added Fibria CEO Marcelo Castelli, “We believe Ensyn and its technology platform, together with Fibria’s capabilities, will allow for the generation of a powerful biofuels growth business over the coming years.”
Shareholders in Ensyn include a division of Chevron U.S.A. Inc., CTTV Investments LLC, Credit Suisse, Felda Palm Industries Sdn Bhd, Impax Asset Management plc, and Investeco Capital Corp. Advisers for this transaction include CIBC and Deutsche Bank.
The companies aim to close the deal by the end of October, at which point definitive documentation and payment will be undertaken.
Separately, Ensyn also has a strategic alliance with UOP, a Honeywell company, through an entity called Envergent Technologies LLC. The work has to do with creating equipment for rapid thermal processing technology, which takes wood and biomass products and converts it into renewable chemicals and liquid fuels.
Ensyn’s technology has uses in heating and diesel engines, among other things, the company stated.