Under the terms of the joint venture, Anhui M&G Guozhen Green Refinery Co, Ltd (the "Green Refinery JV")  will employ PROESA technology licensed by Beta Renewables to convert 970,000-1,300,000 metric tons per year of agricultural residues into cellulosic ethanol, glycols and by-products (such as lignin) in Fuyang City, Anhui Province, PRC. The biomass will be supplied by Guozhen under a long-term fixed price agreement, and the enzymes needed for the conversion of the biomass will be supplied by Novozymes. 

M&G and Guozhen shareholding in the Green Refinery joint venture are 70% and 30%, respectively, and the total joint venture investment is estimated to be around USD 325 million. 

"This is a very important project, not only for Guozhen Group and M&G but also for Fuyang City, as it will create a green and sustainable environment for Fuyang and bolster the local economy," Li Wei, chairman of the Guozhen Group.
 
Marco Ghisolfi, CEO of M&G Chemicals, agreed, calling the deal a "groundbreaking and transformational enterprise."

M&G Chemicals and Anhui Guozhen expect to announce the creation of a second joint venture in the near future -- an effort that will be focused on converting lignin into steam and electricity.