BP and Verenium Announce Significant Partnership

CAMBRIDGE, MASS - BP and Verenium Corporation announced the creation of a strategic partnership to accelerate the development and commercialization of cellulosic ethanol.

According to a press release by Verenium, the partnership combines a broad technology platform and operational capabilities in an effort to advance the development of a portfolio of low-cost, environmentally sound cellulosic ethanol production facilities in the United States, and potentially throughout the world.

Under the initial phase of the strategic alliance, Verenium is to receive $90 million in total funding from BP over the next 18 months for rights to current and future technology held within the partnership.

"We are very excited and proud to be partnering with BP, a world leader in both the traditional and alternative energy industries that shares our commitment and vision to rapidly evolve next-generation ethanol into a commercial-scale solution for our energy needs," Verenium President and CEO Carlos Riva said.

"In addition to BP's world-class capabilities in traditional energy production, logistics and distribution, their commitment to accelerate the development of the global biofuels market was a significant factor in our decision to partner with BP,” he added.

“In addition, both organizations are aligned on the significant market opportunity and operational imperatives for achieving rapid, commercial-scale success," Riva continued.

"BP is very pleased to be entering this important relationship with Verenium,” President of BP Biofuels North America Sue Ellerbusch noted.

“We believe energy crops like sugar cane, miscanthus and energy cane are the best feedstocks to deliver economic, sustainable and scaleable biofuels to the world. This deal puts us at the front of the cellulosic biofuels game," she stated.

The initial phase of the strategic alliance utilizes Verenium's advanced technology for cellulosic ethanol production as the platform for a joint development effort between BP and Verenium.

Verenium Corporation is a leader in the development and commercialization of next-generation cellulosic ethanol, an environmentally-friendly and renewable transportation fuel, as well as high-performance specialty enzymes for applications within the alternative fuels, specialty industrial processes, and animal nutrition and health markets.

BP is of one of the world's largest energy companies, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemicals products for everyday items.