Royal Dutch Shell is nearly doubling its investment in cellulosic ethanol.

Shell announced this week that it is increasing its shareholding in Iogen Energy Corporation from 26.3% to 50%. Shell first took an equity stake in 2002. The terms of the agreement include a significant investment by Shell in technology development with Iogen.

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.