Raízen and Vertoro Collaborate to Enhance the Value of Lignin for Advanced Biofuels and Chemicals

On August 15, Raízen, an integrated energy company with a broad renewable energy portfolio, and Vertoro, a Dutch biotech accelerator, announced the signing of a Joint Development Agreement (JDA) to enhance the value of lignin by converting it into advanced sustainable biofuels, chemicals and materials. As a second-generation feedstock, lignin has a very low carbon footprint, making it an ideal solution for decarbonizing hard-to-abate industries.

As the world's largest second-generation ethanol producer, Raízen generates a large amount of lignin as a byproduct alongside its sustainable ethanol business, providing a unique opportunity to contribute to the global energy transition by providing new low-carbon renewable applications for different industries. Raizen expects to have a lignin production capacity of 1.5 million tons (wet basis) across 7 announced and 2 operational E2G plants. The potential production of 20 E2G plants is up to 3.4 million tons (wet basis).

Vertoro will bring its innovative technology to the collaboration, focusing on upgrading lignin into a form that is more easily soluble and mixable with other materials, simplifying its conversion and making it suitable for a variety of applications. Vertoro’s patented process converts wood and other agricultural residues into a variety of bio-based chemicals, materials and fuels.

“Raízen is the only company to have successfully commercialized cellulosic ethanol, playing a key role in the global energy transition. Now, by combining our growing second-generation ethanol production with Vertoro’s innovative lignin conversion technology, we foresee a shift in how lignin is perceived and used around the world,” said Mateus Lopes, Director of Energy Transition at Raizen. “Today’s announcement reinforces Raízen’s commitment to pioneering renewable fuels, chemicals and materials solutions as part of the global energy transition, while also further strengthening our sustainable product portfolio.”

Throughout the agreement, Raízen and Vertoro will work on three collaborative initiatives. The first initiative involves developing a unique blend of lignin with ethanol or methanol using Vertoro’s proprietary “Goldilocks” process, enabling the use of lignin in higher value products. The blend is intended for use as a sustainable fuel in dual-fuel marine engines, with the goal of increasing the efficiency and power output of biofuel production. At the same time, the partnership will evaluate the feasibility of using the blend in the refining process to make sustainable aviation fuel (SAF), sustainable marine fuel and various other chemicals. In addition, the two companies will focus on developing pure, low-molecular-weight lignin for chemical and material applications.

"We are delighted to be working with Raízen on what will be the world's most significant lignin value-added project," said Michael Boot, co-founder and co-CEO of Vertoro. "This collaboration has the potential to ultimately prove that lignin is both an economically viable resource and an industrially viable resource."

The collaboration will initially focus on large-scale production of samples of Raízen's new lignin products, produced using the Goldilocks biotechnology process at Vertoro's operating demonstration plant in the Netherlands. These samples will be distributed to selected producers in the fuel, chemical and materials industries for application testing. The ultimate goal is to reach an offtake agreement for a commercial-scale production site that will be integrated into Raizen's second-generation ethanol facility. Initial testing has begun in summer 2024.