BP to buy cellulosic biofuels business for $98.3 million

BP and Verenium Corporation announced today that BP Biofuels North America is acquiring Verenium’s cellulosic biofuels technology, including facilities in Louisiana and California for $98.3 million.

In the deal, BP will acquire facilities in Jennings, La., including a pilot plant and demonstration-scale facility, and research and development facilities in San Diego, Calif. BP is also getting cellulosic biofuels technology and related IP and cellulosic enzyme technology and related IP. BP will retain scientists and technologists involved in the biofuels development program, the news release said.

“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, CEO of BP Biofuels.

Verenium will retain its commercial enzyme business, including its biofuels enymes products. It will also have rights to access select biofuels technology developed by BP using the technology it is acquiring from Verenium in the deal.

BP will become the sole investor in Vercipia Biofuels, a 50/50 joint venture formed by BP and Verenium in February of last year.
The transaction is expected to close in the third quarter.