Fuels

BP last week demonstrated its commitment to next generation biofuel with the acquisition of US specialist Verenium’s cellulosic biofuel business for $98.3 million.

Under the terms of the agreement, BP will take over Verenium’s facilities in Jennings, Los Angeles and San Diego, which include pilot plant and demonstration-scale facilities, as well as R&D.

Verenium will retain some R&D, its enzyme business, including its biofuel enzyme products, and will be free to develop its own lignocellulosic enzyme programme.

The company says its cellulosic ethanol technology is on the verge of commercialisation and BP is the right company to carry it forward to the next stage.

The acquisition indicates BP’s intention to lead the cellulosic biofuel industry in the US and will mean that it is one of the few to have all aspects covered from R&D to blending and distribution.

“By acquiring Verenium’s cellulosic biofuel technologies, BP Biofuels should be well placed to accelerate the delivery of low cost, low carbon, sustainable biofuels, at scale,” says BP Biofuels CEO Philip New.

For further information:
www.verenium.com
www.bp.com

Related stories:
EPA unveils renewable fuel targets for 2011 (14-Jul)
US unveils roadmap to produce 36 billion gallons of biofuel by 2022 (25-Jun)
BP invests $10 million in biofuels joint venture (14-Aug 2009)
BP and Verenium join forces to commercialise next-generation biofuel (6-Aug 2008)