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Published on August 6th, 2008 | by Nick Chambers

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BP Invests $90 Million in Verenium’s Cellulosic Ethanol Technology

BP-Verenium PartnershipIt seems that BP is trying to make up for lost time — the worldwide oil giant has invested $90 million in cellulosic ethanol company, Verenium. This is BP’s first foray into the world of cellulosic ethanol (ethanol derived from non-food crops), and man is it a gigantic one.

The money will be distributed to Verenium over the next 18 months, with a likelihood of further investment and cooperation beyond that point. Under the agreement, BP will have broad access to Verenium’s research, production facilities, and technology.

Although relatively late to the fray, BP thinks this investment gives them the “most advanced technology for transforming [cellulosic material] to biofuels,” as Sue Ellerbusch, president of BP Biofuels North America said.

Verenium claims to have the edge in cellulosic ethanol production through genetic engineering of the microbes required to turn the cellulosic material (switchgrass, wood chips, sugarcane bagasse, miscanthus) into ethanol.

They also claim to have developed specialized enzymes that speed the ethanol-making process along. As Verenium points out, enzymes are important to the cellulosic ethanol process in the same way that spark plugs are important to igniting fuel in your engine.

We’ll see where this goes, but that’s a lot of cash and a serious confidence boster to Vernium’s shareholders.

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  • http://cutesexyphilippines.blogspot.com/ pinay sexy

    90 million? oh my goodness

  • http://cutesexyphilippines.blogspot.com/ pinay sexy

    90 million? oh my goodness

  • Johnson

    $90 million thats nothing ,not even a scratch into their assets.

    BP Total assets ▲ US$ 236.076 Billion

    Net income ▼ US$ 20.845 Billion (2007)

    Come on ,if they wanted in they would of grabbed a bigger share. You can $90 Million on the Euro-lottery.

  • Johnson

    $90 million thats nothing ,not even a scratch into their assets.

    BP Total assets ▲ US$ 236.076 Billion

    Net income ▼ US$ 20.845 Billion (2007)

    Come on ,if they wanted in they would of grabbed a bigger share. You can $90 Million on the Euro-lottery.

  • Nick Chambers

    Come on now. Even though it may be a small portion of their earnings, $90 million is still a huge investment by one single company in what, for all intents and purposes, is a venture stage business. There are very few venture capital investments (none?) that reach 90 million dollars from one investor.

  • http://www.find-green.info/search/ethanol Kim

    At least one of the oil companies is realizing it is time for change. Kudos to BP…

  • http://www.find-green.info/search/ethanol Kim

    At least one of the oil companies is realizing it is time for change. Kudos to BP…

  • Jeff

    With the unbelievable profits big oil is making, it’s easy for them to buy up fledgling cellulosic ethanol companies and snuff them out.

  • Jeff

    With the unbelievable profits big oil is making, it’s easy for them to buy up fledgling cellulosic ethanol companies and snuff them out.

  • Nick Chambers

    I don’t think that BP’s intention is to snuff out this company. If that was the intention, it would be counterproductive to highly publicize the investment and the extent of the cooperation. Plus, BP is not buying Verenium. They have purchased exclusive and wide-ranging access to Verenium’s technology, staff and research.

  • http://www.magicalsaltmarshes.com E

    90 million! I knew it was only a matter of time. I could have used a tip; the it would be I investing in my own bio-fuel company!

    A step in the right direction; by an oil company no less, what does this tell us?

    Well that aside how do we make some $$$ on this?

    E

  • http://www.magicalsaltmarshes.com E

    90 million! I knew it was only a matter of time. I could have used a tip; the it would be I investing in my own bio-fuel company!

    A step in the right direction; by an oil company no less, what does this tell us?

    Well that aside how do we make some $$$ on this?

    E

  • Wm

    Hope they are able to pay all $90mil. You know Socialist Obama and Hillary both want to confiscate privately owned oil company profits to redistribute them to the poor (and into their own pockets, of course). Read expand government.

  • Wm

    Hope they are able to pay all $90mil. You know Socialist Obama and Hillary both want to confiscate privately owned oil company profits to redistribute them to the poor (and into their own pockets, of course). Read expand government.

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