Evogene forms Evofuel for seed production

Evogene has established Evofuel, a subsidiary of the company, which will focus on developing seeds to be used as a feedstock for the development of biofuel.

In particular, castor bean varieties will be developed for biofuel commercialisation in both Brazil and Israel.

‘We have headquarters in Israel and field trials there that simulate different water conditions – this is where our core technology is located. However, our commercial-based activities are in Brazil. We don’t have a subsidiary there but we are working with a number of partnerships, such as the recent one we have formed with SLC Agricola,’ Assaf Oron, Evogene's executive VP of business development and strategy, tells Biofuels International.

He says it is investing in feedstock development because current supplies around the world are not meeting the demand for biofuel production.

‘We have completed the first field trials with promising results but then these trials need to be repeated over the next couple of years so we plan for the commercial-size plant to be built in Brazil in 2014,’ he says.

‘Feedstocks are becoming more and more expensive with the average barrel of biofuel costing $100 a barrel, or $150 a barrel without any subsidies. We want to make oil that is usable for a lower cost, at about $50 a barrel. Our feedstock will make up about 50-60% of the total production cost, rather than 80% as with other feedstocks.’

As reported by Biofuels International last month, Evogene has already been working with Brazilian company SLC Agricola to conduct trials in northeast Brazil to test the seed varieties and their potential for commercial-size production. SLC Agricola owns about 250,000 hectares of land which the seeds will be able to be planted on for further trials. The feedstock grown will then be sold on to biofuel producers.

‘Brazil provides a number of characteristics that are suitable for growing the seeds because there is lots of available land, there is an agricultural culture there, there is new innovation happening in the country, and there is also a biofuel market that is already strongly developed,’ adds Oron.