Companies to Collaborate on US Department of Energy-funded renewable resources project

Diversa Corporation (Nasdaq: DVSA - News) today announced that it has entered into a six-year alliance with DuPont to discover and develop novel biocatalysts for the production of fuel ethanol, 1,3 propanediol, and other added-value chemicals from renewable resources such as corn and biomass. As the leader of a grant consortium to develop a biorefinery capable of producing high-value chemical products from biomass, DuPont will receive $19 million in matching funds from the U.S. Department of Energy over four years. Diversa will collaborate with DuPont on the biorefinery grant and will receive research funding, as well as milestone payments and royalties on any new products developed under the six-year collaboration. Under this broad agreement, Diversa and DuPont may also agree to collaborate on additional projects.

"DuPont has established its leadership position in the innovative development of new products using biotechnology in the commercialization of their 3GT (Sorona) polyester material. We look forward to working with DuPont and other members in the biorefinery consortium on this initial project to advance the use of renewable resources in sustainable chemical manufacturing processes," stated Mr. William H. Baum, Diversa's Executive Vice President and Head of its Chemical, Agricultural, and Industrial Enzyme business.

The biorefinery project was selected from nearly 200 proposals submitted to the Department of Energy. Known as the "Integrated Corn-Based Bioproducts Refinery (ICBR)," the project is designed to demonstrate the feasibility and practicality of alternative energy and renewable resource technology. The ICBR would produce sugars from corn and biomass, and use them in a fermentation process to produce fuel ethanol and added value chemicals. The integrated production of fuel ethanol and PDO would yield a process with superior economics and improved environmental performance compared to current processes.

DuPont is contributing expertise in applied chemistry, chemical engineering and project management. Diversa brings its proprietary genomic technologies for the rapid discovery, development and optimization of novel proteins and microorganisms. Other members of the consortium include Deere & Company, offering world-class expertise in agronomic systems analysis and material processing, The National Renewable Energy Laboratory, world-renowned for its expertise in biomass conversion, and Professor Bruce Dale, Ph.D., a biomass expert from Michigan State University, who will address life cycle analysis.