Amyris Inc (NASDAQ:AMRS) Potential In Renewable
Amyris Inc (NASDAQ:AMRS) is trying to exploit the full potential of renewable. Two separate incidents during the last couple of days highlight the potential for its products.
Extension of collaboration agreement:
Amyris Inc (NASDAQ:AMRS) announced recently that its research collaboration with Japan’s Kuraray Co is being extended by two years. The two companies are exploring ways and means of making plastics out of non-oil sources since the last couple of years. Kuraray has also agreed to pay the company for the use of one of its products; farnesene and the agreement may also result in a cash infusion of almost $4 million by Kuraray in the company through a stock purchase. The development is significant. Supplies of crude oil are limited and as oil has several diverse uses, there is always a mismatch between supply and demand. Secondly, the rates of polymers are dependent very heavily on the rates of crude oil. Kuraray has created a liquid rubber based on Amryis’ farnesene. It is using the product in tires and they are being tested for safety and performance. Kuraray has a history of commercializing several resins, textiles as well as fibers.
Amyris will also receive collaboration funding from Kuraray over the next couple of years. Kuraray will also work in developing uses in other field using the company’s products.
Biofuel testing also underway:
Apart from this bit of good news, Amyris Inc (NASDAQ:AMRS) is also seeing progress in its renewable biofuel field. The company’s Renewable Diesel fuel is being tested by the United States Maritime Administration (MARAD). The testing is being carried out abroad the training ship, State of Michigan. The fuel is being tested to compare operational, air emission and vibration difference against regular ultralow sulfur fuel (ULSD). A 76:33 mix of ULSD and the Renewable Diesel fuel lowered air emissions without impacting engine performance. Several other biofuels are also being tested and these positive results are bound to have a positive impact on the company.