Ceres and Raizen Sign Multi-Year Collaboration to Scale-Up Sweet Sorghum for Ethanol

THOUSAND OAKS, Calif. and SAO PAULO, March 16, 2015 /PRNewswire/ -- Ceres, Inc. CERE, an agricultural biotechnology company, and Brazilian energy company Raízen S.A., today announced that they have signed a multi-year collaboration agreement to develop and produce sweet sorghum on an industrial scale. Sweet sorghum can be grown to complement existing feedstock supplies and extend the operating season of Brazilian sugarcane-to-ethanol mills.

Under the collaboration, the companies will each contribute in-kind services and resources and share in the revenue from the ethanol produced from Ceres' sweet sorghum above certain levels. This season, Raízen has planted Ceres' sweet sorghum evaluation in a single location and plans to expand to multiple mills in the seasons to come.

Ceres President and CEO Richard Hamilton said that the company is pleased to be working more closely with Raízen, which has taken a leading role in adopting new agricultural and industrial technologies. "The ethanol industry in Brazil has a history of successfully competing against low-priced oil and we believe that sweet sorghum, which has lower production costs than sugarcane, can be further developed and scaled up as an integral part of the industry's feedstock supply," said Hamilton.

Raízen, a joint venture of Royal Dutch Shell and Cosan, has taken a keen interest in developing and scaling up sweet sorghum as a means to grow margins and increase supply for its sugar and ethanol facilities. The company has conducted field and industrial evaluations of Ceres' sweet sorghum hybrids since 2011.

"During the past seasons we have made significant and measureable improvements in performance and we remain optimistic that sweet sorghum can be used to rapidly scale up feedstock supplies following the current downturn in the sector," said Antonio Stuchi, Agro industrial director from Raízen.  "By working with Ceres, we have early access to the latest innovations in seed products and leading experts in sorghum crop management."

Andre Franco, General Manager of Ceres Sementes do Brasil, said that the collaboration can facilitate adoption of Ceres sweet sorghum products and best practices throughout the sector. "By collaborating more closely with Raízen, we can continue to drive yields higher and address the industry's need for additional feedstock supply," said Franco.

In addition to sweet sorghum, Ceres markets high biomass sorghum to mills and other agri-industrial facilities for use in generating electricity, heat and steam in Brazil. In the U.S., Ceres is marketing improved forage sorghum hybrids to dairies and livestock producers.

About Raízen
Raízen, a joint venture of Royal Dutch Shell and Cosan, is Brazil's fifth largest company in terms of revenue and the nation's leading producer of sugarcane ethanol. With 24 sugar and ethanol facilities, the company produces more than 2 billion liters of ethanol, 4.5 million tons of sugar and 900 MW of electricity from biomass each year. Raízen is also present in 58 airports, has 60 distribution terminals and sells approximately 23 billion liters of fuel to transport segments, industry and retail. Raízen has a network of more than 5,000 Shell brand service stations and over 900 Shell Select convenience stores.

About Ceres
Ceres, Inc. is an agricultural biotechnology company that develops and markets seeds to produce crops for markets that utilize plant biomass, including biofuels, renewable electricity and livestock feed and forage. The company's technology platforms, which can increase crop productivity, improve quality, reduce crop inputs and improve cultivation on marginal land, have broad application across multiple crops, including food, feed, fiber and fuel crops. Ceres markets its seed products under its Blade brand. The company also licenses its biotech traits and technology, including its Persephone genome visualization software, to other organizations.

Ceres Forward-Looking Statements
This press release may contain forward-looking statements. All statements, other than statements of historical facts, including statements regarding Ceres' efforts to develop and commercialize its products, anticipated yields and product performance, status of crop plantings, short-term and long-term business strategies, market and industry expectations, future operating metrics, and future results of operations and financial position, including anticipated cost savings from the company's plan to align expenditures and projected cash expenditures, are forward-looking statements. You should not place undue reliance on these forward-looking statements because they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond Ceres' control. Factors that could materially affect actual results can be found in Ceres' filings with the U.S. Securities and Exchange Commission. Ceres undertakes no obligation to update publicly, except to the extent required by law, any forward-looking statements for any reason after the date the company issues this press release to conform these statements to actual results or to changes in the company's expectations.

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SOURCE Ceres, Inc.