Freiburg (Platts)--6May2008

Germany's chemical group Sud-Chemie and engineering company Linde have
agreed to jointly develop and market production plants for second-generation
biofuels, the companies said Tuesday.

The exclusive agreement covers a biotechnological process to extract
fuels such as ethanol from non-food plant matter such as wheat and maize
straw, grasses or wood.

Under the agreement, Sud-Chemie will contribute its know-how in the
sectors of biocatalysis and bioprocess engineering while Linde will provide
engineering expertise in the areas of biotechnology and chemistry.

The partnership will assist potential customers, such as ethanol
producers as well as investors interested in second-generation biofuel plants,
in planning and constructing these plants on a worldwide scale, the companies
said.

Second-generation biofuels offer better CO2 savings and do not compete
food crops compared to existing first-generation biofuels such as biodiesel
made from rapeseed oil.


Next-generation biofuels begin to emerge
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