BioFuels Journal

Verenium Corp. Pays University of Florida to Use Cellulosic Ethanol Technology License

Verenium Expands Presence in Florida with Tampa Office

St. Petersburg, FL--Verenium Corporation (NASDAQ:VRNM), a leading developer of biofuels derived from low-cost, abundant biomass and a developer of specialty enzyme products, today presented the University of Florida a $66,000 royalty check for its patented cellulosic ethanol technology.

The ceremonial presentation was made at the Florida Department of Agriculture and Consumer Services' 2007 Farm-to-Fuel Summit -- an event aimed at helping Florida farmers and ranchers produce biofuel crops to help reduce the nation's dependence on foreign oil.

The royalty payment is from the first commercial production of biomass ethanol produced using patented technology developed by Dr. Lonnie Ingram, a Distinguished Professor in UF's Department of Microbiology and Cell Science, and Director of the Florida Center for Renewable Chemicals and Fuels, and licensed to Verenium. BioEthanol Japan -- a joint venture of Marubeni Corp. and Tsukishima Kikai Co., LTD -- is using the technology under license from Verenium in their 1.4 million liter-per-year cellulosic ethanol plant in Osaka, Japan.

It is the world's first commercial plant to produce cellulosic ethanol from wood construction waste.

Cellulosic ethanol is an environmentally friendly and renewable transportation fuel produced from a wide array of feedstocks, including sugarcane bagasse, dedicated energy crops, agricultural waste, and wood products.

"This initial royalty payment represents a true milestone in our long and productive partnership with the University of Florida," said Carlos A. Riva, Verenium's President and Chief Executive Officer.

"It demonstrates the very real commercial potential for this technology and the fact that technology transfer is alive and well in Florida.

"Moreover, this check is tangible proof that the commercial success of Verenium's technology will benefit the University and its stakeholders."

Timothy R. Eves, Verenium's Florida Vice President of Business Development, presented the royalty check to Florida Agriculture Commissioner Charles Bronson and Jimmy Cheek, the University of Florida's senior vice president for agriculture and natural resources.

"It is exciting to see what was once just a vision come to fruition," Bronson said.

"I am confident this is only the beginning of Florida's front and center role in the development of environmentally friendly alternative fuels."

Added Cheek, "I am pleased to accept this check for the University of Florida.

" It is a symbol of our successful research that is contributing to making alternate fuels available.

"This technology can convert crops, trees, and yard and agricultural waste to fuel.

"Imagine converting kudzu to fuel. Professor Ingram did. The impact is global."

"Dr. Ingram is a pioneer in the development of environmentally sustainable ethanol technologies," said Win Phillips, UF's Vice President for Research.

"The University is pleased to be partnering with Verenium to move this important technology out of the laboratory and into commercial use, where it can help reduce greenhouse gases and make the U.S. more energy independent."

Verenium operates a pilot-scale cellulosic ethanol facility in Jennings, Louisiana, that is a centerpiece of the company's ongoing research and development efforts.

In February 2007, Verenium also broke ground on the first demonstration-scale cellulosic ethanol facility in the United States.

The company expects to achieve mechanical completion of this project, located adjacent to the Jennings pilot facility and rated for 1.4 million gallons per year, by the end of 2007.

In Florida, where Verenium operates a research laboratory at the University of Florida's Sid Martin Biotechnology Development Incubator in Alachua, the company is looking to build its own cellulosic ethanol plant in partnership with a large landowner or agricultural interest.

"The Florida climate is ideal for growing the feedstocks needed to produce cellulosic ethanol," said Eves, an energy industry veteran who joined Verenium in June.

"We've opened an office in Tampa, and we're committed to the further expansion of our presence in the state."

For more information, call John B. Howe at 617-674-5318, John Finotti at 904-891-3867, or Evan Smith at 212-850-5606.