Novozymes: cellulosic profitable by 2015 if oil rebounds

COPENHAGEN Feb 19 (Reuters) - Novozymes (NZYMb.CO) believes next-generation cellulosic ethanol could be profitable without government subsidies by 2015 in the U.S. if oil rebounds to $80-120 per barrel, executives said on Thursday.

Prospects for the fuel looked much more grim in Europe, the chief executive of the world's top maker of industrial enzymes said.

"I don't think it's going to fly in Europe," said Steen Riisgaard in a meeting with journalists. "In the U.S., the first generation bioethanol paved the way. In Europe we don't have the infrastructure. To commit 200 million euros ($251.9 million) for a second-generation plant here with no distribution system is very difficult."

Novozymes executives said in 2010 the company will introduce enzymes ready to make cellulosic ethanol, which is produced from crop waste or fast-growing grasses.

They said Novozymes would sell 30-50 cents worth of enzymes per gallon of cellulosic bioethanol compared to 3.5 cents to 6 cents of enzymes per gallon of the first-generation fuel.

($1=.7938 Euro)

(Reporting by Gelu Sulugiuc)