C5 yeast is used for the production of cellulosic ethanol and the partnership will allow Novozymes to register and market the yeast and accelerates the global rollout of Terranol’s yeast to customers in the cellulosic ethanol industry.

Commenting on the partnership Novozymes vice president for bio-energy Poul Ruben Andersen said that the company is working towards removing any bio-tech hurdles in the development of a cellulosic ethanol industry.

"Terranol’s C5 yeast is currently one of the best strains developed, and by getting it registered and marketed around the world, we can help make it available to the biofuel industry," said Andersen.

Novozymes vice president for research and development Claus Crone Fuglsang added, "With our combined R&D capabilities we can ensure the final optimization of the strain in order to achieve maximum economic performance for our cellulosic ethanol customers."