BP (NYSE: BP) and Martek Biosciences Corporation (Nasdaq: MATK), announced the signing of a Joint Development Agreement (JDA) to work on the production of microbial oils for biofuels applications. The partnership combines a broad technology platform for the conversion of sugars into biodiesel.
Under the terms of the multi-year agreement, Martek and BP will work together to establish proof of concept for large-scale, cost effective microbial biodiesel production through fermentation.
“Martek is pleased to partner with BP’s Alternative Energy team, to combine our unique algae-based technologies and intellectual property for the creation of sustainable and affordable technology for microbial biofuel production,” said Steve Dubin, Martek CEO.
BP has agreed to contribute up to $10 million to an initial phase of the collaboration. Martek will perform the biotechnology research and development, and BP will contribute to its integration within the biofuels value chain.
All intellectual property owned prior to the execution of the JDA will be retained by each respective company, and all intellectual property developed during the JDA will be owned by BP, with an exclusive licence to Martek for application and commercialization in nutrition, cosmetic and pharmaceutical applications. Additionally, each party is entitled to certain commercial payments from technology commercialized in the other party’s field.
“As an alternative to conventional vegetable oils, we believe sugar to diesel technology has the potential to deliver economic, sustainable and scaleable biodiesel supplies,” Philip New, CEO BP Biofuels, said.
The sugar to biodiesel pathway uses advanced biological science to convert sugars derived from biomass into lipids using fermentation micro-organisms; the lipids are then converted into fuel molecules through chemical or thermocatalytic processes.
Biodiesel produced from sustainable feedstocks via the fermentation of sugars will offer the potential to deliver greenhouse gas emission reductions of up to 80-90% when compared to traditional fossil fuel, the companies said.
BP and Martek said advantages of sugar to biodiesel over conventional biodiesel made from vegetable oils include: access to a wide variety of biomass feedstocks such as sugar cane, sugar cane waste (bagasse), energy grass and woodchips; use of sustainable, non-food, plant biomass as a feedstock; the ability to tailor the product for a variety of diesel and jet-fuel needs; and reduced exposure to vegetable oil price.
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