PORTLAND, OR — Naturally Advanced Technologies Inc. has amended its agreement with the National Research Council (NRC) of Canada to include collaboration on cellulose technology research for the production of cellulosic ethanol from sustainable feedstock, such as corn stalks and straws, which is the unexploited byproduct in agri-food production.

• The NAT - NRC collaboration began in 2004 and was extended in 2007 for the design and construction of advanced enzyme technology for the extraction and cleaning of industrial hemp fiber for the textile sector, as spearheaded by Dr. Wing Sung.
• As this research is in the final stages, the two parties have agreed to divert existing funding commitments to pursue additional opportunities for the advanced enzyme technology, namely in cellulosic ethanol.
• Currently, bio-ethanol is produced by the fermentation of yeast with glucose that comes from corn starch, which requires high levels of fertilizer and energy use and results in high levels of waste materials.
• The next research phase will address the inefficient enzymatic conversion of cellulose to glucose for the subsequent fermentation to ethanol by developing technology via protein engineering and an efficient hydrolysis protocol.
• The extended agreement expires May 9, 2012, and maintains the same parameters for NAT to secure the exclusive rights of the intellectual property.

"Leading this project will be Jeremy K. Jones of our board of directors," stated Ken Barker, CEO of NAT. "Jeremy has extensive experience with cellulosic ethanol and advanced materials as vice president for Koch Genesis, the venture arm of Koch Industries that includes Koch's operating businesses INVISTA, Georgia-Pacific and Flint Hills Resources. I am confident he will provide excellent direction as we continue collaborating with the NRC to build our advanced enzyme treatment technology portfolio."

"We are thrilled that Dr. Sung will again serve as Principal Research Officer for this project. He has received numerous awards for his leadership and promotion of the life sciences industry and collaboration within the industry on a national scale. His study of proteins and enzymes was pivotal in developing CRAiLAR(R), NAT's organic enzyme bath process that transforms hemp into fiber that can be used in traditional cotton knitting systems, thereby enabling hemp to enter mainstream apparel production. In addition, Dr. Sung designed enzymes that reduce toxic effluent in the pulp and paper industry," concluded Barker.

For more information visit www.naturallyadvanced.com.

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