BP to establish joint venture with Verenium for cellulosic ethanol; invests additional $22.5 million

In Massachusetts, BP has invested an additional $22.5 million in Verenium and formed a joint venture with the cellulosic ethanol pioneer to commercialize Verenium’s cellulosic ethanol technology.

BP’s $112.5 million total investment in Verenium is the largest by an oil major in an advanced biofuels company, and will provide the funding basis for a commercial scale cellulosic ethanol plant that will break ground in 2010 and commence operations in 2012.

Verenium will contribute $22.5 million in assets to the joint venture, which will pursue global licensing of Verenium’s technology as well as developing the commercial scale plant in Florida. -

The joint venture company will be led and supported by a team comprised of employees from both BP and Verenium and will be governed by a board with equal representation from both parent companies. The JV will initially be based in Cambridge, Massachusetts.

“This collaboration represents a critical next step in positioning
Verenium and BP at the forefront of commercializing cellulosic biofuels
in the United States,” said Carlos A. Riva, President and Chief
Executive Officer of Verenium. “The creation of this joint venture
brings together innovative and experienced developers, designers,
engineers, operators and managers capable of realizing the potential of
this technology. This is a true convergence of industrial biotechnology
and energy production processes, which will allow us to deliver cleaner,
more sustainable fuels.”

“This next stage in our relationship with Verenium demonstrates our real
commitment to making cellulosic ethanol a reality in the U.S. fuels
market in the near term. BP and Verenium together have the technological
know-how, engineering capability and market expertise required to
demonstrate that we can deliver better, more sustainable biofuels, more
quickly,” Sue Ellerbusch, president of BP Biofuels North America said.

Verenium’s plant in Mermentau, Louisiana opened earlier this month and is the largest operating cellulosic ethanol plant.

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