Jacobs, Shell in European biofuels contract

Pasadena, Calif.-based Jacobs Engineering Group (NYSE: JEC) announced today that it received a contract from Netherlands' Royal Dutch Shell (NYSE: RDS.A) for the installation of biofuel blending facilities throughout Europe.

Financial terms of the three-year agreement were not disclosed. Under the contract, Jacobs will install ethanol and biodiesel blending facilities in Shell depots.

"We are very enthusiastic to support Shell in implementing this biofuels program," said Robert Matha, VP at Jacobs, in a statement.

"It achieves Shell's objective to comply with European Union directives and satisfies customer demand for clean fuels products."

Jacobs said it will develop conceptual designs and basic engineering packages for various biofuel blending projects, progressing to full implementation and construction management for most of the projects. Jacobs plans to execute the work in its Ghent, Belgium, office.

Earlier this month, Shell received the first shipment of cellulosic ethanol under a deal with Ottawa-based Iogen (see Iogen ships cellulosic ethanol to Shell).

Iogen sent 100,000 liters of an initial 180,000 liter order from Shell. Produced from wheat straw at Iogen's Ottawa demonstration facility, the cellulosic ethanol is being purchased by Shell for use in upcoming fuel applications.

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