BP moves ahead with US cellulosic ethanol project

19 February 2009 16:40  [Source: ICIS news]

HOUSTON (ICIS news)--Oil giant British Petroleum (BP) said on Thursday it planned to carry on a project to produce cellulosic ethanol in the US in partnership with US biotech firm Verenium Corporation.

The joint venture was originally announced in August and includes the construction of a 36m gal/year facility in Highlands County, Florida.

Production from the unit is scheduled to begin in 2012. Total investments in the plant are estimated at $250m-300m, according to the companies.

BP and Verenium said they would initially invest a combined $45m (€36m) in cash and assets in the project.

The BP-Verenium announcement follows news last week that Canadian biotech company Lignol decided to shelve a similar project in the US.

Lignol on 9 February called off plans to build a cellulosic ethanol plant in Colorado, citing unstable capital markets and volatile energy prices.

Cellulosic ethanol is produced from non-edible biomass, such as switch grass, corn stover and wood chips.

The US plans to use 16bn gal/year of cellulosic ethanol to meet a 36bn gal/year renewable fuels mandate set for 2022.

($1 = €0.80)

For more on ethanol visit ICIS chemical intelligence
Bookmark Simon Robinson’s Big Biofuels Blog for some independent thinking on biofuels
To discuss issues facing the chemical industry go to
ICIS connect


By: William Lemos
+1 713 525 2653



AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

ICIS news FREE TRIAL
Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index