Shell and Iogen cancel plans for new biofuel plant

Royal Dutch Shell and Iogen have cancelled plans to construct a commercial-scale biofuel plant in Manitoba, Canada. This about-turn has resulted in the loss of 150 jobs.

The joint venture was set to construct a plant that produced ethanol from straw and other plant waste rather than food crops. Shell first invested in Iogen in 2002 and the two companies have jointly operated a demonstration plant in the Ottawa region since 2004.

The companies will reportedly still maintain their relationship even in the face of this cancellation, and Shell will retain the licensing rights to the developed technology that would have been used.

Iogen has said that 110 people will still be employed at its Ottawa headquarters and also that there are plans to expand new technology for production of cellulosic biofuels.