Shell and Iogen announce extended alliance to accelerate a next generation biofuel

    OTTAWA, July 15 /CNW Telbec/ - Royal Dutch Shell plc and its subsidiaries
("Shell") and Iogen Corporation today announced an extended commercial
alliance to accelerate development and deployment of cellulosic ethanol.
    The terms of the agreement include a significant investment by Shell in
technology development with Iogen Energy Corporation, a jointly owned
development company dedicated to advancing cellulosic ethanol. The arrangement
will also see Shell increasing its shareholding in Iogen Energy Corporation
from 26.3% to 50%. Shell first took an equity stake in 2002.
    The collaboration with Iogen is a key part of Shell's strategic
investment and development programme in biofuels, particularly in 'next
generation' biofuels using non-food feedstocks. The fuel is made from raw
materials such as wheat straw and promises to reduce CO2 production by up to
90% compared to conventional gasoline.
    Iogen's first demonstration commercial plant opened in Ottawa in 2004.
Shell is considering investing in a full-scale commercial cellulosic ethanol
plant and is contributing to Iogen's detailed feasibility and design
assessment work.
    Commenting on Shell's increased investment, Dr. Graeme Sweeney, Shell
Executive Vice President Future Fuels and CO2 said "This is a strong statement
that Shell is committed to accelerating the development of cellulosic ethanol
in collaboration with Iogen. We have come a long way together already on this
particular technology pathway for sustainable biofuel and we will be working
ever closer to meet the technical and commercial challenges facing larger
scale production."
    "We are excited to see this expanded partnership", said Brian Foody,
Chief Executive Officer of Iogen Corporation. "This transaction sets the stage
for successful large scale cellulosic ethanol production."

    Royal Dutch Shell plc is incorporated in England and Wales, has its
headquarters in The Hague and is listed on the London, Amsterdam and New York
stock exchanges. Shell companies have operations in more than 110 countries
and territories, with businesses including: oil and gas exploration;
production and marketing of liquefied natural gas and gas to liquids;
marketing and shipping of oil products and chemicals; and renewable energy
projects including wind, solar and biofuels.

    Iogen is a leading biotechnology firm specialising in cellulosic ethanol
- a fully renewable transportation fuel made from agricultural residue that
can be used in today's cars. The company has been producing cellulosic ethanol
at its Ottawa demonstration plant since 2004. Iogen also develops,
manufactures and markets enzymes used to modify and improve the processing of
natural fibers within the textile, animal feed and pulp and paper industries.
In operation since 1974, Iogen is a privately held company located in Ottawa,
Canada. For more information, visit

    Notes to Editors

    Royal Dutch Shell plc is working to meet government mandates for biofuel
and, with its experience, expertise and assets, has become the world's largest
distributor of biofuels. The company is working with biofuel manufacturers to
secure cost-effective supply and press for social and environmental
safeguards. A constraint on the potential of conventional biofuels is that
they use food crops. Shell is a leader in the development of next generation
biofuels, using non-food bio materials, alternative processes and high
performance fuels.
    Shell's global biofuels programme also includes collaborations with
Choren (on production on BTL), Codexis (on enzyme conversion) and Virent (on
development of biogasoline), as well as a joint venture called Cellana
(development of marine algae for vegetable oil).

For further information:

For further information: Shell International Media Office: Media line,
+44 (0)207 934 3505; Martin von Arronet, +31 (0)70 377 6240; Shell Office
Canada: Denita Davis, (403) 691-2168; Iogen Corporation: Mandy Chepeka, (613)

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