Indianapolis-based Xylogenics licenses yeast strain to ethanol producer

Indianapolis-based bioengineering firm Xylogenics Inc. has licensed its proprietary yeast strain to a Milwaukee firm that
is a supplier to the fuel-ethanol industry. It is the first such licensing agreement for Xylogenics.

Lallemand Ethanol Technology will use Xylogenics’ yeast strain, which is notable in its potential to produce ethanol
from cheap, abundant plant matter, such as grasses and the leftover portion of a corn stalk. Most ethanol is made from corn
kernels, a food crop whose price has risen with the demand for ethanol.

Xylogenics claims its yeast strain, developed at the Indiana University School of Medicine, can increase yields and lower
costs of producing corn ethanol.

Terms of the deal were not disclosed.

“We are confident that our combined strengths will allow us to move quickly to commercialization and make a positive
impact on the fuel-ethanol industry economics,” said Mike Neibler, CEO of Xlyogenics.

The ethanol industry is trying to slash production costs to make E85—a mix of 85 percent ethanol and 15 percent gasoline—more
competitive with gasoline. The industry is also lobbying federal agencies to permit the blending of a higher percentage of
ethanol into ordinary gasoline. Most gasoline is blended with no more than 10 percent ethanol.

The eight-employee Xlyogenics is based at the Indiana University Emerging Technology Center along the Central Canal. It was
funded by $150,000 from IU faculty and from the Lugar Center for Renewable Energy. Earlier this year, it lassoed $225,000
from angel investors affiliated with the University of Notre Dame.

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