Dyadic and Abengo amend licence agreement

Dyadic International is a global biotechnology company focused on the discovery, development, manufacture and sale of enzyme and protein products for the bioenergy, biochemical, biopharmaceutical and industrial enzyme industries. The company has announced that Abengoa Bioenergy New Technologies (Abengoa), has agreed to pay them $5.5 million for an expansion of its rights under the non-exclusive license agreement the parties entered into in February 2009.

The license agreement originally provided Abengoa with the right to use Dyadic's C1 platform technology to develop, manufacture and sell enzymes for use in second-generation biorefining processes, converting biomass into sugars for the production of fuels, chemicals and/or power in certain territories.

The amended license agreement expands the territories to worldwide rights and provides Abengoa with the ability to produce, use and sell C1 enzymes in first as well as second generation biofuels and other bio-based processes.

'Since 2007, Abengoa and Dyadic have worked closely together in using Dyadic's C1 platform technology to develop improved enzymes that efficiently convert biomass into fermentable sugars,' says Dyadic's President and CEO, Mark Emalfarb. 'Abengoa has produced these enzymes at commercial scale and has successfully used them in its demonstration plant in Salamanca, Spain to produce cellulosic ethanol.'

In addition, Dyadic is entitled to receive royalties on the commercial production and use by Abengoa, its affiliates and third party sublicensees, as well as royalty fees on the sale of products by Abengoa and its affiliates. Abengoa will have the right to work with third party sublicensees to further develop C1 enzymes. All other terms of the amended and non-exclusive license agreement remain confidential.