Cambridge, Mass. (UPI) Jul 16, 2010
BP Biofuels North America, a unit of oil giant BP, acquired the cellulosic biofuels business of Verenium Corp. for $98.3 million, the two companies announced Thursday.
The agreement gives BP control of Verenium's research and development facilities in San Diego and a pilot plant and demonstration-scale facility in Jennings, La. Cambridge, Mass.-based Verenium will retain control of its commercial enzyme operations as well as select research and development capabilities.
Cellulosic biofuels are usually made from grass, wood chips or agricultural waste and are seen as an alternative to more prevalent alternative fuels made from corn and other food crops.
"This acquisition demonstrates BP's intent to be a leader in the cellulosic biofuels industry in the U.S. and positions us as one of the few global companies with an integrated end-to-end capability, from R&D through commercialization to distribution and blending," said Philip New, chief executive of BP Biofuels in a statement.
"We believe that BP is the right company to make the investment needed to carry this forward and expedite the commercialization of the technology," said Carlos A. Riva, president and chief executive of Verenium, in a statement.
"As a result of this transaction, Verenium will have the resources to grow our commercial enzyme business while maintaining strategic access to the emerging cellulosic ethanol market in a manner that better fits our resources," said Riva.
In light of the Gulf oil spill, "it should be pretty obvious that BP can't afford to stay addicted to oil, but this small investment is not going to move them beyond petroleum," said Jeremy Martin, a senior scientist with the Union of Concerned Scientists, the Los Angeles Times reports.
"BP should be building new facilities and making investments measured in billions," he said.
Other oil giants are also stepping into the biofuel sector. In June, Wisconsin-based Virent Energy Systems Inc. said Shell was among the investors from which it had received $46.4 million in funding. The two companies also partnered in a demonstration plant in Madison, Wis., that can produce up to 10,000 gallons of biofuel each year.
Last year Exxon Mobil invested $300 million in La Jolla, Calif.-based biofuel firm Synthetic Genomics. This week the two companies announced the opening of greenhouse facility dedicated to researching algae-based biofuels.
"The reality is that the big oil companies have invested trillions of dollars in their infrastructure over the past hundred years, and we're going to need that infrastructure for biofuels," Joel Kurtzman, a senior fellow focusing on energy for the Milken Institute in Santa Monica, told the Times.
"And we will also need alternate sources of energy as supplies shrink and oil becomes more expensive."
Share This Article With Planet Earth
Bio Fuel Technology and Application News
ExxonMobil And Synthetic Genomics Advance Algae Biofuels Program
La Jolla CA (SPX) Jul 16, 2010
Exxon Mobil and Synthetic Genomics have announced the opening of a greenhouse facility enabling the next level of research and testing in their algae biofuels program. The new facility, opened at a ceremony at SGI headquarters in La Jolla, CA, moves the project from a laboratory setting to an environment that better reflects real-world conditions for algae production. SGI and ExxonMobil re ... read more
Nations to seek clean energy cooperation|
Solar powers Shanghai train station
SOLON Selected As Solar Module Provider For National Grid Solar Site
Quantum And Asola Expand Into Canada
Study Shows Stability And Utility Of Floating Wind Turbines
Leading French Wind Farm Developer Says Yes To Triton
Floating ocean wind turbines proposed
China to dominate wind power
Gazprom: No South Stream invite for RWE
Tecnalia Investigates Ecological Cement That Cuts CO2 Emissions
UCLA Chemists And Korean Colleagues Enhance Ability To Capture CO2
Can The Human Body Be Used As A Power Plant
Reports Detail Global Investment And Other Trends In Green Energy
World warned energy path unsustainable at US talks
Rio Tinto Expand Pilbara Operation
Guests pedal to a cheaper stay at Copenhagen eco-hotel
Daimler and Foton of China unveil heavy truck partnership
China's Geely chairman to head up Volvo Cars
BMW says sales to roar ahead in 2010
PetroChina says open to closer ties with BP: report
Hospitals urge antiobiotic-free meat
Thailand to unleash swarm of wasps on crop pest
AgBank shares to start trading in Hong Kong
China seizes eight tonnes of endangered pangolins
Amazon says Kindle sales leapfrog hardback sales
Spanish channel announces 'world's first 3-D TV series'
One Tiny Satellite In Space, Whiz Kids Plan Two More
iPad and other gadgets drain Asia of electronic components
|The content herein, unless otherwise known to be public domain, are Copyright 1995-2010 - SpaceDaily. AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by SpaceDaily on any Web page published or hosted by SpaceDaily. Privacy Statement|