US energy bill could mean big business for Novozymes and Danisco  

2008.01.24
Danish enzymes manufacturers Novozymes and Danisco see bumper growth potential for enzymes for bioethanol production in the US
The recent approval by the US Congress of an energy bill that mandates a four-fold increase in US biofuels production and consumption to 36bn gallons/year by 2022 bodes well for Danish enzyme manufacturers Novozymes and Danisco. The companies are international market leaders in making enzymes for bioethanol production with a combined global market share of more than 75%.
 
CEO of Novozymes Steen Riisgard commented to financial daily newspaper Børsen: "It is self-evident that if the American market develops as expected, then it will represent major business for us." Last year, Novozymes saw a 40% revenue growth in enzymes for biethanol production, an increase the company expects will continue.
 
Danisco also sees significant growth potential in this area. CEO Tom Knutzen told Børsen that the race for who can develop the best enzymes for producing second generation "cellulosic" bioethanol made from biowaste such as straw and corn stems, has started. "This is where a real growth is waiting for those who manage to solve that puzzle. It can lead to very high growth rates," he said.
 
Both in Europe and the US, politicians are increasingly looking to move away from first generation technology, where bioethanol is produced from food crops, and over to second generation. This is because demand from energy companies can inflate corn prices, which adversely affects livestock farmers. At the present time however, processes for producing second generation bioethanol are so costly that they are not regarded as commercially viable.
 
Link > Novozymes 
 
Link > Danisco   

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