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BP cancels plans for US cellulosic ethanol plant

Release date:
24 October 2012

BP announced today it is cancelling plans to build a commercial-scale cellulosic ethanol plant in Highlands County, Florida and refocusing its US biofuels strategy on research and development as well as licensing its industry–leading biofuels technology.


“Given the large and growing portfolio of investment opportunities available to BP globally, we believe it is in the best interest of our shareholders to redeploy the considerable capital required to build this facility into other more attractive projects,” said Geoff Morrell, BP vice president of communications.


BP originally announced plans to build the Florida facility in 2008 with the intention of turning thousands of acres of energy crops into 36 million gallons per year of cellulosic ethanol. While ending its pursuit of commercial-scale cellulosic ethanol production in the US, BP continues to invest in and operate its world-class biofuels research facility in San Diego, California, and a demonstration plant in Jennings, Louisiana, to further develop next generation cellulosic biofuel technologies and license them for commercial use in the US and around the world.


Globally, BP is a leading investor in commercial biofuels production. The company has completed construction of its joint venture 110 million gallon per year ethanol plant in Hull, England, which is expected to come online later this year. In Brazil, BP took ownership of three sugarcane ethanol mills located in the Goiás and Minas Gerais states of Brazil in 2011 and is currently expanding production there. In addition, BP is developing advanced biofuel technology via its joint venture investment in biobutanol company Butamax.

Further information:




US BP Press Office, +1 281 366 4463, uspress@bp.com

Notes to Editors:


  • In 2005, BP made a commitment to spend $8 billion over 10 years on alternative energy. BP Alternative Energy has already invested more than $7 billion of that, including over $4 billion in the US.
  • In addition to its Biofuels business, BP also operates 13 wind farms with over 1,000 turbines across seven US states. With 1,955 megawatts of gross capacity, BP Wind Energy provides enough renewable electricity to power over 586,000 average American homes. That’s the equivalent of a city the size of Washington, DC.
  • BP Alternative Energy’s Emerging Business & Ventures unit manages a $160 million investment portfolio focused on sustainable energy technologies.

About BP in the US:


BP has invested more in the United States over the last five years than any other oil and gas company. With more than $52 billion in capital spending between 2007 and 2011, BP invests more in the US than in any other country. The company is the second largest producer of oil and gas in the US, a major oil refiner and a leader in alternative energy sources including wind power and biofuels. BP provides enough energy each year to light the entire country. With 23,000 US employees, BP supports nearly a quarter of a million domestic jobs through its business activities. For more information, www.bp.com