the terms of the joint venture, Anhui M&G Guozhen Green Refinery
Co, Ltd (the “Green Refinery JV”) will employ PROESA technology
licensed by Beta Renewables to convert 970,000-1,300,000 metric tons per
year of agricultural residues into cellulosic ethanol, glycols and
by-products (such as lignin) in Fuyang City, Anhui Province, PRC. The
biomass will be supplied by Guozhen under a long-term fixed price
agreement, and the enzymes needed for the conversion of the biomass will
be supplied by Novozymes.
M&G and Guozhen shareholding in
the Green Refinery joint venture are 70% and 30%, respectively, and the
total joint venture investment is estimated to be around USD 325
“This is a very important project, not only for Guozhen
Group and M&G but also for Fuyang City, as it will create a green
and sustainable environment for Fuyang and bolster the local economy,”
Li Wei, chairman of the Guozhen Group.
Marco Ghisolfi, CEO of M&G Chemicals, agreed, calling the deal a “groundbreaking and transformational enterprise.”
Chemicals and Anhui Guozhen expect to announce the creation of a second
joint venture in the near future — an effort that will be focused
on converting lignin into steam and electricity.