New Leader in Cellulosic Ethanol?

Diversa Corp. and Celunol Corp. have signed a definitive merger agreement to create a new leader in the emerging cellulosic ethanol industry. The combined company, which will probably be called Celunol, will be the first within the cellulosic ethanol industry to possess integrated end-to-end capabilities in pre-treatment, novel enzyme development, fermentation, engineering, and project development. At the same time, the company will continue to pursue broad market opportunities for specialty industrial enzymes within the areas of alternative fuels, specialty industrial processes, and health and nutrition, with a primary focus on enzymes for the production of biofuels. The combined company will be headquartered in Cambridge, MA, and have research and operations facilities in California, Louisiana, and Florida.