BP partners Verenium

BP and US biomass energy company Verenium Corporation have formed an equal joint venture to produce and sell bioethanol made from cellulosic (non-food) feedstocks.

Cellulosic ethanol, also known as Ceetol, is made from wood, grasses, or the non-edible parts of plants. Traditionally, it is difficult to produce as cellulose is hard to break down.

The joint venture company was founded with $45m (£32m) in funding and assets from the parent companies. Its aim is to develop the first commercial-scale cellulosic ethanol facility in the US, at Highlands County, Florida, and to create future opportunities for cellulosic ethanol technologies.

Carlos Riva, president and chief executive of Verenium, said: ‘The creation of this joint venture brings together innovative and experienced developers, designers, engineers, operators and managers capable of realising 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.’