CALGARY—An Alberta-based biofuel firm working on technology to convert waste oil, grease and sustainable vegetable oils into drop-in fuel has signed an development and licensing agreement with Royal Dutch Shell plc.
SBI BioEnergy Inc. and the global oil giant’s International Exploration and Production unit announced the new deal June 27.
It grants Shell exclusive rights to the Edmonton company’s biofuel processes, while stipulating the two companies will work together to demonstrate and scale up the technology.
“We are confident that Shell is the right industry partner to commercialize our low carbon intensity renewable fuel process,” Inder Singh, SBI’s founder, president and CEO, said in a statement. “Working with Shell means that we have a partner with proven capabilities to investigate the potential this technology has for global application and that is something that is very exciting for us.”
Founded in 2007, SBI launched a $20 million demonstration project last year at Edmonton’s Research Park with support from the Alberta government. It uses a continuous catalytic process to convert fat, oil or grease into renewable gasoline, diesel and jet fuel that can be dropped directly in to conventional fuels. They produce fewer emissions than petroleum fuels and don’t require any engine modifications.
The new development agreement is one of a number of Shell ventures aimed at reducing the amount of carbon dioxide emissions in transport fuel.