Verenium taps German firm to help with enzyme sales in Europe

Cambridge, Mass.-based Verenium (Nasdaq: VRNM) said today it signed a deal with Ascheberg, Germany-based Add Food Service to distribute and co-develop enzymes for cellulosic ethanol and starch-based processing.

Under the deal, Add Food Service plans to distribute two of Verenium's proprietary enzymes, Fuelzyme and Veretase, in Europe and other markets. Verenium plans to continue to sell the products in North America.

Financial terms were not disclosed, but Verenium officials said in a news release that the move was expected to increase global market penetration of its enzymes that liquefy starch-based mashes and slurries.

Fuelzyme is designed to improve the efficiency and economics of ethanol production. Verenium says its proprietary method for starch breakdown enables ethanol producers to reduce enzyme dosing, thereby reducing the spend on enzymes. The enzyme also enables mash liquefaction at low pH levels, which reduces the use of chemicals, the company says.

The second product, Veretase, is designed to improve the efficiency and economics of sweetener and beverage alcohol production.

Verenium develops cellulosic ethanol, as well as specialty enzymes for the biofuel, industrial and animal health markets. The company is building the world's first commercial-scale cellulosic ethanol plant, expected to open in about two years (see Verenium to start building first commercial cellulosic ethanol plant). The company has also studied termites as a way to produce fuel (see Termites in the gas tank).

Add Food Service develops enzymes for industrial and food applications primarily in Europe and South America.

Under the deal announced today, the two companies also plan to jointly develop additional enzyme products for starch processing and the starch-based ethanol industry in Europe and North America.

In August, Verenium announced a partnership with London's BP (NYSE: BP) to license existing intellectual property from each company and to jointly develop intellectual property in cellulosic ethanol production (see Water, materials and biofuel get some cash).