Verenium Corporation just announced that it has signed an agreement with Value Prior to Pulping (VPP), an organization that is a special project between the American Forest and Paper Association and Cleantech Partners, Inc. Under the agreement, the two organizations will work together to try out Verenium’s C5 technology to see how well it works for making ethanol from hemicelluloses created during the pulp and paper process.

If it works, an average kraft mill (producing 1500 tons per day) could produce 15 million gallons of ethanol each year. The paper and pulp industry as a whole could produce 1.5 to 2 billion gallons of ethanol each year.

In a press release, Gregory Powers, Executive Vice President of Research and Development of Verenium, commented on the agreement:

“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 .  “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.”