HOUSTON (DTN) — Verenium Corp. and BP on Friday announced that their jointly-owned, commercial cellulosic ethanol project has been selected by the U.S. Department of Energy to enter the due diligence phase of its Title XVII Loan Guarantee Program.

Under this program, the DOE may provide loan guarantees for project debt covering up to 80 percent of eligible costs.

The project, a commercial cellulosic ethanol plant located in Highlands County, Fla., is scheduled to break ground in 2010.

“We believe this signals an important endorsement of our cellulosic process technology and a strong show of support for the advancement of next-generation biofuels,” said Carlos A. Riva, president and CEO at Verenium.

Verenium is a developer of next-generation cellulosic ethanol and high-performance specialty enzymes.