DSM Becomes a Player in the Biogas Market

Royal DSM N.V., the global Life Sciences and Materials Sciences company headquartered in the Netherlands, today announces an agreement to acquire Biopract GmbH, based in Berlin (Germany). The acquisition of privately held Biopract will serve as an entry point for DSM into the promising biogas market, which is showing 15-20% growth per year.

The acquisition has been finalized. Parties agreed not to disclose financial details of the acquisition. The impact of the acquisition on DSM's net sales in 2009 and 2010 is not expected to be material.

Founded in 1992, Biopract's main focus has been on the commercialization and extension of their Methaplus enzyme series for the improvement of agricultural and industrial biogas production. The company has a strong application and technology position in this field.

Rob van Leen, Chief Innovation Officer of DSM said: "We are convinced that biotechnology will contribute significantly to the sustainable and efficient use of natural resources today and in the future. We look forward to combining Biopract's expertise with ours to further increase the efficiency and performance of biogas plants."

Biogas is produced by anaerobic fermentation of biodegradable materials such as biomass, manure or sewage, green waste and energy crops. It can be used to generate electricity and as a low-cost fuel for any heating purpose. Biogas can also be upgraded to natural gas quality.

Driven by climate change and alternative energy initiatives, the market for production and optimization of biogas-related processes will become significant in the coming years. The acquisition of Biopract will accelerate DSM's growth in this market.

Biopract's activities will be integrated into DSM's biogas service concept for optimizing the biotechnology of biogas plants. Based on a thorough analysis of the production process, DSM offers agricultural and industrial biogas plants tailor-made advice and a product mix to improve the biotechnology process and to increase the performance of the plant.

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