Shell buys stake in Iogen

Anglo-Dutch giant will own over 20 percent of ethanol cellulosic ethanol plant
By | May 01, 2002
Canada's Iogen Energy Corp., developer of a process to turn forest and agricultural waste into a low-emissions auto fuel, has drawn a $29 million investment from oil giant Royal Dutch/Shell Group RD.AS, which is on the prowl for alternative energy sources. Privately owned, Ottawa-based Iogen focuses on cellulosic ethanol production.

Shell, the Anglo-Dutch giant that owns 72 percent of Shell Canada Ltd. SHC.TO, the country's No. 2 integrated oil firm, will own "just over 20 percent" of Iogen for a return on investment, an Iogen executive said. Shell is not the first petroleum firm to pump money into Iogen, which employs about 100 people and owns a C$35 million ($22.3 million) demonstration plant.