An agreement to test the effectiveness of Verenium's C5 technology for the creation of cellulosic ethanol from the hemicelluloses generated by the pulp and paper process has been signed by the company with the Value Prior to Pulping organization and CleanTech Partners, Inc. It is estimated that a typical 1500 ton-per-day kraft mill could produce approximately 15 million gallons of ethanol annually by utilizing the process. The total potential market opportunity is estimated to be between 1.5 and 2 billion gallons of ethanol per year.

"We are pleased to be partnering with VPP and enthusiastic for the opportunity to explore the potential of our C5 technology to create biofuels from feedstocks sourced from the pulping process," said Gregory Powers, Executive Vice President of Research and Development of Verenium.  "Integrating ethanol production into the pulping process could create an attractive market opportunity for Verenium and the pulping industry.  If this project proves successful, Verenium will be well positioned to enable this new source of low-cost biofuels."