CO2 closes Codexis JDA, gets $2-million investmentCO2 closes Codexis JDA, gets $2-million investment
2009-12-15 17:55 ET - News Release
Mr. Glenn Kelly reports
CO2 SOLUTION ANNOUNCES CDN$2 MILLION EQUITY INVESTMENT BY CODEXIS AND COLLABORATION IN CARBON CAPTURE
CO2 Solution Inc. has concluded a joint development agreement (JDA) with Codexis, Inc. to accelerate the development and deployment of its enzymatic carbon capture technology. Codexis has also completed a $2-million equity investment in CO2 Solution and holds 16.59 per cent of CO2 Solution's issued and outstanding common shares immediately following the subscription of common shares by Codexis.
Under the collaboration, CO2 Solution's proprietary enzymatic method for the efficient capture of carbon dioxide from coal-fired power plants and other large sources of emissions will be combined with Codexis, Inc.'s directed enzyme evolution technology. Coal-fired power plants are major emitters of carbon dioxide, a significant greenhouse gas (GHG) believed to contribute to global warming. CO2 Solution's technology uses the natural enzyme carbonic anhydrase to enhance CO2 absorption efficiency from power plant emissions, at lower cost than conventional technology. Codexis, Inc.'s technology will be used to improve this enzyme's ability to function in harsh industrial conditions. Carbonic anhydrase is found in humans and other mammals, and is critical in the efficient management of CO2 during respiration.
Highlights of the joint development agreement also include the following:
- The initial term of the JDA is until Jan. 31, 2011, and may be extended or replaced by another form of association upon mutual agreement.
- CO2 Solution and Codexis will work exclusively with each other in the field of carbon capture for the term of the agreement.
- The agreement encompasses the economic validation of the enzymatic carbon capture technology with CO2 Solution responsible for processes, testing and enzyme delivery systems, and Codexis responsible for enzyme development and manufacturing.
- CO2 Solution and Codexis will co-operate on Canadian and U.S. government funding opportunities for the technology as well as customer and adopter opportunities.
- Codexis will pay an immediate commitment fee to CO2 Solution in the amount of $475,000 that is refundable under certain events.
Under a subscription agreement entered into between Codexis and CO2 Solution, Codexis acquired 10 million common shares of CO2 Solution by way of private placement at a price of 20 cents per common share. The shares issued to Codexis as part of this private placement are subject to a four-month statutory resale restriction. CO2 Solution has also agreed to name a Codexis representative to its board of directors. The Codexis nominee will take the place of a current director, who will resign and then sit as a board observer until the next annual general meeting.
"Coal-fired power plants will be a major source of energy for many years to come, yet high cost is a significant current barrier to adoption of carbon dioxide capture technology at these plants. Cost-effective carbon capture at these and other large emissions sources is an important step toward managing carbon dioxide emissions," said Alan Shaw, PhD, Codexis president and chief executive officer. "CO2 Solution is an innovator and recognized leader in the field of enzymatic carbon capture processes and we look forward to working with them to apply our proprietary enzyme technology platform to meet this global environmental challenge."
Commenting on the agreements, Glenn Kelly, president and chief executive officer of CO2 Solution, remarked: "This is a significant moment in the history of CO2 Solution. We believe that there is no better partner for enzymes for our technology than Codexis and we are delighted that they have also taken the view that CO2 Solution is their ideal partner in the growing carbon capture industry. With this new investment and collaboration, CO2 Solution intends to fully capitalize on the opportunities that it affords to help bring this technology to the North American and global market and provide a solution for the efficient, large-scale mitigation of greenhouse gas emissions."
About Codexis
Codexis is a clean technology company headquartered in Redwood City, Calif. The company is a leading provider of proprietary, optimized biocatalytic solutions that enable the manufacture of products cost-effectively, at commercial scale and with significantly reduced environmental impact relative to conventional manufacturing processes. Codexis has commercialized its biocatalysts in the pharmaceutical industry and is developing biocatalysts for use in producing advanced biofuels under a multiyear research and development collaboration. The company is also using its technology platform to pursue biocatalytic solutions in other bioindustrial markets, including carbon management, water treatment and chemicals.