Raizen Teams Up with Vertoro for Advanced Biofuels Production from Lignin

Raízen, an integrated energy company with a diverse renewable energy portfolio, and Vertoro, a Dutch biotechnology accelerator, have announced a Joint Development Agreement (JDA) to advance the utilization of lignin. This partnership aims to convert lignin into high-value, sustainable biofuels, chemicals, and materials. As a second-generation feedstock, lignin has a significantly low carbon footprint, positioning it as an effective solution for decarbonization.

As the world’s leading producer of 2nd Generation Ethanol, Raízen generates significant quantities of lignin as a by-product from its sustainable ethanol production. This offers a unique opportunity to support the global energy transition by creating new low-carbon renewable applications across various sectors. With an anticipated lignin production capacity of 1.5 million tons (wet basis) from its 7 announced and 2 operational E2G plants, and potential output of up to 3.4 million tons (wet basis) from 20 E2G plants, Raízen is well-positioned for impact. Vertoro will leverage its innovative technology to upgrade lignin, making it more soluble and blendable with other materials. This patented approach enables the conversion of woody and agricultural residues into a broad spectrum of bio-based chemicals, materials, and fuels, enhancing lignin’s versatility and utility in diverse applications.

Under the agreement, Raízen and Vertoro will collaborate on three key initiatives. First, they will develop a unique lignin blend with ethanol or methanol using Vertoro's proprietary "Goldilocks" process. This blend aims to enhance the value of lignin by enabling its use in higher-value products, including sustainable fuels for dual-fuel maritime engines, which could improve both efficiency and power output. Concurrently, the partnership will explore the feasibility of using this lignin blend in oil refining to produce Sustainable Aviation Fuel (SAF), sustainable marine fuel, and various chemicals. Lastly, they will work on producing pure, low molecular weight lignin for applications in chemicals and materials, expanding its utility and market potential.

Mateus Lopes, Energy Transition Director at Raízen, highlighted the company’s pivotal role in the global energy transition. Raízen has achieved a significant milestone by producing Cellulosic Ethanol on a commercial scale, positioning itself as a leader in advanced renewable fuels. The integration of their 2nd Generation Ethanol production with Vertoro’s innovative lignin conversion technology marks a transformative step. This collaboration is expected to revolutionize how lignin, a byproduct of biomass, is utilized globally. The announcement underscores Raízen’s dedication to advancing renewable fuels, chemicals, and materials, thereby reinforcing their commitment to sustainable solutions and enhancing their product portfolio as part of the broader global energy transition.

Michael Boot, co-founder and co-CEO of Vertoro, expressed enthusiasm about the collaboration with Raízen. He highlighted that this partnership is poised to become the most significant lignin valorization project globally. Boot emphasized that their joint effort aims to prove that lignin, a complex organic polymer found in plant cell walls, can be both economically viable and valuable in industrial applications.

The collaboration will begin by producing large-scale samples of Raízen’s new lignin products using Vertoro’s Goldilocks bio-technology process at Vertoro’s Demo Plant in the Netherlands. These samples will be distributed to selected producers in the fuel, chemical, and materials sectors for application testing. The primary objective is to secure offtake agreements for a commercial-scale production site, which will be incorporated into Raízen’s 2nd Generation Ethanol facilities. Initial testing of these products is scheduled to start in summer 2024.