FuturaGene has entered into a collaborative development agreement with the Guangxi Academy of Sciences (GXAS). GXAS is the premier Chinese government research entity in Guangxi Province and is focused mainly on bioenergy research and development of non-food crops.

FuturaGene and GXAS will work together on the development and optimization of second generation biofuel production from woody species, especially eucalyptus.

FuturaGene will supply raw material (feedstock) from eucalyptus species which have been selected for optimal growth in the Guangxi region. These species will undergo classic breeding and genetic enhancement to improve yield and stress tolerance.

GXAS will develop analysis methodologies for the early selection of tree species suited for biofuel production and optimized industrial processes for the transformation of the wood-based raw material into biofuels.

Guangxi Province has the largest planted area of eucalyptus in China (circa 1 million hectares). It is defined by the Chinese government as the pilot province for bioenergy research and development, with an emphasis on alternative and second-generation feedstocks and biofuel production processes, including molasses ethanol, cassava ethanol, lignocellulosic (cellulose-to-ethanol) ethanol, bio-diesel, bio-butanol and bio-gas. This program is led by GXAS.

FuturaGene and GXAS will have the option to commercialize jointly the outcome from the matching of tree species and development of industrial process.

Stanley Hirsch, Chief Executive of FuturaGene, commented:

"This is our fourth major agreement in China with key institutions and corporates. It is a further demonstration of our leading involvement in the development of sustainable industrial processes to support the use of woody crops in carbon neutral energy provision.

"GXAS, situated in an important forestry province, is a key institute, in the development of sustainable, non-food crop based biofuel processes in China. GXAS recognizes that the enhancement technologies we have developed provide a breakthrough technology for cellulose-to-ethanol conversion.

"Together we aim to develop extensive wood-based raw material with advanced industrial process which can be used to reduce costs materially in the production of bioenergy."