São Paulo, Brazil, and Geleen, The Netherlands, August 15, 2024 - Raízen, an integrated energy company with a broad portfolio of renewables, and Vertoro, a Dutch biotechnology accelerator, today announced the signing of a Joint Development Agreement (JDA) to enhance the value of lignin by transforming it into advanced, sustainable biofuels, chemicals, and materials. As a second-generation feedstock, Lignin boasts a very low carbon footprint, making it an ideal solution for decarbonizing hard-to-abate sectors.

As the world's largest producer of 2^nd Generation Ethanol, Raízen generates substantial amounts of lignin as a by-product alongside its sustainable ethanol operation, presenting a unique opportunity to contribute to the global energy transition by offering new low-carbon renewable applications for different sectors. Raizen has an expected lignin production capacity of 1,5 million tons (wet basis) across 7 already announced and 2 operating E2G plants. The potential production is up to 3,4 million tons (wet basis) across 20 E2G plants. Vertoro will apply its innovative technology to this collaboration, focusing on upgrading the lignin into a form that dissolves and blends more easily with other materials, thereby simplifying its transformation and making it suitable for a variety of applications. Vertoro’s patented approach transforms woody and other agricultural residues into a wide range of bio-based chemicals, materials, and fuels.

"Raízen already plays a pivotal role in the global energy transition  by being the only company that has succeeded in producing Cellulosic Ethanol on a commercial scale. Now, by integrating our growing 2^nd Generation Ethanol production with Vertoro’s innovative lignin conversion technology, we foresee a transformation in the way lignin is perceived and utilized globally,” said Mateus Lopes, Energy Transition Director at Raizen. “Today’s announcement reinforces Raízen’s commitment to pioneering renewable fuels, chemicals and material solutions  as part of the global energy transition, while also further enhancing our sustainable product portfolio."

Throughout the agreement, Raízen and Vertoro will engage in three collaborative initiatives. The first involves developing a unique blend of lignin with ethanol or methanol, utilizing Vertoro's proprietary “Goldilocks” process, that allows lignin application in higher value products. This blend is designed to be used as sustainable fuel in dual-fuel maritime engines, aiming to enhance both the efficiency and power output of biofuel production. Simultaneously, the partnership will assess the feasibility of using this blend in oil refining processes to create Sustainable Aviation Fuel (SAF), sustainable marine fuel and various other chemicals. Additionally, the companies will focus on developing pure, low molecular weight lignin, suitable for use in chemical and material applications.

"We are excited to partner with Raízen on what is set to become the world's most substantial lignin valorization endeavor," remarked Michael Boot, Vertoro’s co-founder and co-CEO. "This partnership promises to demonstrate conclusively that lignin can be both a financially- and industrially-viable resource."

The collaboration will initially focus on producing large-scale samples of Raízen’s new lignin products at Vertoro’s running Demo Plant, which are derived using Vertoro’s Goldilocks bio-technology process, at Vertoro’s demonstration plant in the Netherlands. These samples will be distributed to selected producers in the fuel, chemical, and materials sectors for application testing. The ultimate goal is to secure offtake agreements for a commercial-scale production site, which will be integrated into Raizen’s 2nd Generation Ethanol facilities. Initial testing is to commence in summer 2024.