Verenium partnership
Cellulosic ethanol is a renewable fuel source which will become an essential part of the future global fuel pool
BP believes that with the right technology and production methods, cellulosic ethanol from energy grasses will deliver clean, sustainable biofuels that have the potential to reduce greenhouse gas emissions by up to 90%.
On 18 February 2009, BP and Verenium Corporation announced the formation of a 50-50 joint venture company to develop and commercialize cellulosic ethanol from non-food feedstocks.
The joint venture company will act as the commercial entity for the deployment of the cellulosic ethanol technology developed and proven during the first phase of the BP-Verenium partnership, announced last August. Together, BP and Verenium have agreed to commit $45 million in funding and assets to the joint venture company. This collaboration is intended to progress the design and engineering required for the development of one of the US’s first commercial-scale cellulosic ethanol facilities, located in Highlands County, Florida.
“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 at Verenium. “The creation of this joint venture company 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 that will allow us to deliver cleaner, more sustainable biofuels.”
“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" said Sue Ellerbusch, president of BP Biofuels North America.
The joint venture company will initially focus on securing financing for a first commercial-scale cellulosic ethanol facility in Highlands County, Florida and expects to break ground on that site in 2010. Production from this plant is expected to begin in 2012. With plans to add additional capacity, the joint venture company intends to develop a second site in the Gulf Coast region.
This collaboration builds on the strategic alliance between BP and Verenium announced in August 2008, which included an investment of $90 million. The alliance focuses on technology and operations capabilities to advance development of low-cost, cellulosic ethanol production facilities.
BP is actively developing technology for advanced biofuels and other bioenergy applications. Using technology, the Verenium partnership will improve how biofuels are sourced, and produced - a key element of the BP Biofuels strategy.
Cellulosic ethanol
Cellulosic ethanol is a renewable fuel source produced from biomass-derived products such as sugarcane waste (bagasse), energy grasses, rice straw and wood chips. Cellulose, a long-chain polysaccharide found in nearly all plant life, is the most abundant molecule on earth.
The biomass is first broken down into fermentable sugars using acid or enzymatic hydrolysis and industrial enzymes, after which the sugars are fermented into ethanol using various fermentation organisms.
Ethanol produced from cellulosic biomass is believed to have many benefits over first-generation ethanol including, the use of non-food feedstock, substantially greater yield than grain ethanol per acre of feedstock, minimal exposure to volatile commodity price risks across the production process and a more favourable environmental impact. It also offers the potential to deliver significant greenhouse gas emission reductions.
Ethanol produced from cellulosic biomass is believed to have many benefits over first-generation ethanol including, the use of non-food feedstock, substantially greater yield than grain ethanol per acre of feedstock, minimal exposure to volatile commodity price risks across the production process and a more favourable environmental impact. It also offers the potential to deliver significant greenhouse gas emission reductions.
