BP and Verenium joint venture invited for federal funding
The existing joint venture between BP and Verenium Corporation aims to commercialize next-generation cellulosic ethanol for transportation using nonfood-based renewable resources. Images courtesy of Verenium Corporation and BP plcA 50/50 joint venture company for cellulosic ethanol development between BP and Verenium Corporation has been selected by the US Department of Energy (DOE) for the due diligence phase of its loan guarantee program that could provide for up to 80% of costs.
The existing joint venture between the two companies aims to commercialize next-generation cellulosic ethanol for transportation using nonfood-based renewable resources. The joint venture was announced on February 18 this year, with a 36-million-gallon per year facility costing $250 million to $350 million starting construction in 2010 in Highlands County, Florida.
The plant is not expected to start production until 2012. A second site is already planned for the Gulf Coast region. Cellulosic ethanol will be produced from agricultural waste, dedicated energy crops, wood products, and wood waste. The companies will also look into cellulosic ethanol derived from low-cost, biomass-derived sugars.
"The joint venture's progress to the next stage of the review process for the DOE loan guarantee program is very encouraging,” said BP Biofuels North America’s president Sue Ellerbusch.
"This type of government support is absolutely critical to develop new technology at commercial scale and enable the growth of emerging, high-impact industries, such as alternative energy," said Verenium president and CEO Carlos Riva.
Verenium is a leader in the development and commercialization of cellulosic ethanol, a renewable transportation fuel. The company is also a leader in specialty enzymes used in producing biofuels, industrial applications, and animal health markets. Verenium is listed on the NASDAQ as VRNM.
BP is one of the world’s largest legacy energy companies and has been a major player in the global biofuels market. Since 2006, BP has announced investments of more than $1.5 billion in biofuels research, development, and operations. This includes other partnerships with other companies to develop technologies, feedstock, and processes. BP put $500 million over 10 years to the Energy Biosciences Institute for research of biotechnology into energy.
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Mike R. Lopez
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