Brazilian pulp producer forms joint venture, invests in Ensyn
Brazilian-based pulp producer Fibria Celulose S.A. has formed a joint venture with Ensyn Corp., to produce biobased fuels and chemicals. In addition to the joint venture formation, Fibria has also invested $20 million into Ensyn. One of the world’s largest pulp producers, Firbria intends to also supply non-food biomass for future conversion use.
The $20 million dollar investment by Fibria will provide the company with roughly 6 percent ownership of Ensyn, and according to the company, will also allow Fibria to exercise future rights through further investment that would increase its holdings of Ensyn to 9 percent. Fibria will not be part of a shareholder group that also includes: Credit Suisse, Impax Asset Manager PLC, CTTV Investments LLC (a division of Chevron U.S.A. Inc.) and others.
Ensyn, a U.S.-based advanced biofuels and chemical developer has created a process the company has trademarked, called Rapid Thermal Processing. Marcelo Castelli, CEO of Fibria, said the company’s mission is to leverage fiber growing expertise and market position in Brazil.
“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,” according to Robert Graham, chairman and CEO of Ensyn. In addition to financial support and future access to biomass feedstock, Ensyn has awarded Fibria a place on its board of directors.