You can’t turn on the television lately without BP dominating the news headlines. However, now it is making news for some positive reasons.
BP Biofuels North America is to acquire Verenium’s cellulosic biofuels business for $98.3million, which will include the facilities at Jennings, LA and San Diego, CA. Verenium meanwhile will retain its commercial enzyme business and have the right to develop its own lignocellulosic enzyme program. It will also retain select research and development capabilities and the rights to access select biofuels technology.
According to Carlos A Riva, the president and chief executive officer at Verenium, the strategic development partnership with BP has advanced the cellulosic ethanol technology to the cusp of commercialisation. Now the agreement will allow both companies to pursue growth opportunities in their respective businesses and to achieve goals in the near-term.
BP will also become the sole investor in Vercipia Biofuels, which is a joint 50-50 venture it formed with Verenium in February, 2009. Vercipia is aiming to commercialise cellulosic technology for the production of ethanol from a wide range of non-food feedstocks.
