TMO Renewables Ltd, a developer of a new process for converting biomass into fuel ethanol, is pleased to announce that it has entered into a research and supply agreement with Morvus Technology Ltd, a privately owned pharmaceutical company, to explore biofuel applications for organisms involved in the discovery and commercialisation of anti-cancer drugs.

This venture is the latest addition in TMO's ongoing development of its novel ethanol fermentation process using unique thermophilic (or heat loving') bacteria. TMO's groundbreaking process: can produce ethanol from almost any type of biomass and biowaste, without competing with food crops and for high-grade land boasts shorter process times and provides substantial energy gains over conventional ethanol production processes with TMO's growing library of micro-organisms, will be applicable to the production of other biofuels, particularly bio-butanol.

Under the terms of the agreement: Morvus will carry out research to adapt the micro-organism Clostridium for the production of bio-butanol or bio-hydrogen in a cost-efficient manner.

TMO will fund the £810,000, three-year programme.

Morvus will receive an upfront payment and a royalty from future biofuel sales.

1:34pm Wednesday 26th March 2008

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