Renewable fuels alliance

and

, one of

's largest ethanol distributors and marketers, are to commercialise advanced renewable fuels made from sugarcane.

The first product, a renewable diesel that works in current engines, is targeted for commercialisation in 2010. Scale-up and testing work to date reportedly indicate that this fuel scales more quickly and economically than currently available biofuels, and reduces emissions by 80 per cent over petroleum diesel.

Using Amyris' technology platform, the new joint venture, Amyris-Crystalsev Pesquisa e Desenvolvimento de Biocombustiveis, will work with Brazilian sugarcane mills and fuel producers to scale production of the Amyris renewable diesel fuel. Amyris will hold the majority stake in the Amyris-Crystalsev venture, and Crystalsev will hold the remaining stake and contribute commercialisation expertise.

Santelisa Vale, the second largest ethanol and sugar producer in Brazil and majority owner of Crystalsev, has agreed to provide two million tons of sugarcane crushing capacity and to adopt the new technology beginning at it Santelisa mill.