BP (NYSE: BP) and Verenium Corporation (Nasdaq: VRNM) today announced the formation of a 50-50 joint venture to develop and commercialize cellulosic ethanol from non-food feedstocks.
The joint venture company will act as the commercial entity for the deployment of cellulosic ethanol technology being developed and proven under the first phase of the BP-Verenium partnership, announced last August.
The companies did not announce a separate name for the company.
"This next stage in our relationship with Verenium demonstrates our real commitment to making cellulosic ethanol a reality in the U.S. fuels market in the near term," Sue Ellerbusch, president of BP Biofuels North America, said.
The joint venture company will initially be based in Cambridge, Massachusetts and will be led by a team of employees from both BP and Verenium. It will be governed by a board with equal representation from both companies.
The joint venture company will initially focus on developing and securing financing for a first commercial-scale cellulosic ethanol facility in Highlands County, Florida and expects to break ground on that site in 2010. The estimated construction cost for this 36 million gallon-per-year facility is between $250 and $300 million. Production from this plant is expected to begin in 2012.
With plans to add additional capacity, the joint venture company also intends to develop a second site in the Gulf Coast region.
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