Verenium Corporation has entered into an agreement to test the effectiveness of technology for the creation of cellulosic ethanol from pulp and paper processing.

The is agreement with Value Prior to Pulping (VPP), an organization created by the Agenda 2020 Technology Alliance, a special project of the American Forest and Paper Association, and CleanTech Partners, Inc. VPP is funded by the U.S. Department of Energy (DOE), the State of Wisconsin and several large forest products companies.

“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 Gregory Powers, Executive Vice President of Research and Development of Verenium. “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.”

It is estimated that a typical 1500 ton-per-day kraft mill could produce approximately 15 million gallons of ethanol annually. The total potential market opportunity is estimated to be between 1.5 and 2 billion gallons of ethanol per year.