BP and Verenium Corporation announce strategic partnership to advance the exploration and accelerate development of cellulosic ethanol as a viable alternative to fossil fuels.

BP, one of the world’s largest energy companies plans to  give Verenium $90 million in funding over the next 18 months for rights to current and future technology developed within the partnership.

Verenium Corporation is a leading force in the development and commercialisation of next-generation cellulosic ethanol, a renewable transportation fuel, as well as high-performance specialty enzymes for applications within the alternative fuels and specialty industrial processes.

Cellulosic ethanol is a renewable fuel source produced from biomass-derived products such as sugarcane waste (bagasse), switchgrass, rice straw and wood chips. Cellulose, a long-chain polysaccharide found in nearly all plant life, is the most abundant molecule on earth. BP claim that it could have many benefits over first-generation ethanol including that it can be produced from non-food sources and potentially produce a greater yield than grain ethanol per acre of feedstock.

“BP is very pleased to be entering this important relationship with Verenium. We believe energy crops like sugar cane, miscanthus and energy cane are the best feedstocks to deliver economic, sustainable and scaleable biofuels to the world. This deal puts us at the front of the cellulosic biofuels game,” said Sue Ellerbusch, president of BP Biofuels North America.