Evogene's subsidiary, Evofuel, and T6 Industrial to collaborate on biodiesel feedstock production in Argentina - Collaboration represents expansion of Evofuel’s Latin American operations, currently focused on Brazil
Rehovot, Israel and Rosario, Santa Fe, Argentina
May 22, 2012
Evogene Ltd. (TASE: EVGN) and T6 Industrial S.A., a leading biodiesel producer in Argentina, today announced that Evofuel Ltd., Evogene's wholly owned subsidiary, and T6 Industrial S.A., entered a collaboration for development of castor bean seeds as a sustainable and cost competitive feedstock for biodiesel production.
Under the collaboration, Evofuel and T6 Industrial S.A aim to evaluate and develop Evofuel's advanced castor bean varieties, displaying high oil yield under rain-fed conditions, for commercial production in Argentina. The companies anticipate initiating field trials in Argentina as well as validating the economics and scalability of using Evofuel’s castor bean varieties as a feedstock to supply T6 Industrial's biodiesel facilities. "Our announced collaboration with T6 Industrial is a strategic step towards expanding our activity into additional markets in Latin America, further to our ongoing activity in Brazil, which bears substantial opportunities for large scale commercial production of castor," stated Assaf Oron, General Manager of Evofuel. "We are excited to work with T6 Industrial to provide a viable and economically attractive feedstock solution for the biodiesel market in Argentina."
“In the next three years, T6 is planning to lead the international market of 2nd generation Biodiesel; reinforcing its actual worldwide leadership in biodiesel production,” declared Gabriel Ríos, General Manager of T6.
“T6 Industrial has found the collaboration with Evofuel a strategic alliance in order to obtain the feedstock necessary to produce 2nd generation biodiesel,” explained Andres Shocron, Financial Manager. “T6 Industrial will support Evofuel so as to achieve together a successful plantation of castor bean in specific areas of our country.”
According to the USDA Foreign Agriculture Service, Argentina’s 2011 biodiesel production was 2.5 billion liters, with soybean oil being the main feedstock. In addition to significant fluctuations in soybean oil prices, its continuous expansion for biodiesel consumption has spurred a debate on the impact of using food crops for biofuels, raising doubts on the sustainability and long-term feasibility of relying on these sources. Evofuel's castor varieties are aimed at being highly attractive economically with currently available feedstock, such as soybean, enabling sustainable oil production at a cost equivalent to approximately $50 per barrel.
T6 is an agribusiness company that adds value to the agro-industrial chain in Argentina; specialized in the Oil, Biodiesel and Glycerin Production. T6 initiated the oleo-chemical industry in 2007 with the first production of neutral oil and biodiesel plant, duplicating the production capacity up to 500.000 tons per year in 2011. Nowadays, T6 is the biggest producer of neutral oil, biodiesel and refined glycerin in the country and an important player in the international market for biofuels. In the next few years, T6 Industrial searches to lead the biodiesel market in national and international level. For additional information, please visit www.termina6.com.ar
Evogene is a world leading developer of improved plant traits, such as yield and drought tolerance, for a wide diversity of key crops through the use of plant genomics. The company focuses on utilizing its proprietary computational genomic technologies to provide a complete solution for plant trait improvement through combining state of the art biotechnology and advanced breeding methods. Evogene is collaborating with world leading seed companies to introduce its improved plant traits into key commercial crops under milestone and royalty bearing agreements. Evogene's headquarters are in Rehovot, Israel, and its stock is traded on the Tel Aviv Stock Exchange (TASE: EVGN). For additional information, please visit Evogene’s website at www.evogene.com
Evofuel Ltd. is engaged in the development and commercialization of seeds for second-generation feedstock for the growing biofuel market. The company applies advanced breeding utilizing world leading plant genomics capabilities together with agro-technique expertise to improve potential biofuel feedstock and enable its efficient and sustainable large scale production. Evofuel is focused on commercialization of high yielding castor bean seeds as a cost competitive, sustainable feedstock source for Biodiesel & Biojet, initially in Brazil. Evofuel was incorporated in January 2012 as a wholly owned subsidiary of Evogene Ltd. (TASE: EVGN), a world leading developer of improved plant traits for a wide diversity of key crops through the use of plant genomics. For additional information, please visit Evofuel's Website at: www.evo-fuel.com
More news from: Evogene Ltd.
Published: May 22, 2012