BP Closes Sale on Verenium Cellulosic Business
BP Biofuels is now the official proud owner of Verenium’s cellulosic biofuels business. The companies announced the closing today of the $98.3 million transaction announced on July 15, 2010.
Under the sale, BP acquires the Jennings, LA biofuel pilot plant and the demonstration facility, as well as the San Diego R&D facilities. BP also receives Vereniums cellulosic biofuels and enzyme technologies and related IP. Verenium retains its commercial enzyme business, including its biofuels enzymes products and has the right to develop its own lignocellulosic enzyme program. Verenium will also retain select R&D capabilities, as well as rights to access select biofuels technology developed by BP using the technology it is acquiring from Verenium through this agreement.
“We are very pleased that our strategic development partnership with BP has successfully advanced our cellulosic ethanol technology to the cusp of commercialization,” said Carlos A. Riva, President and Chief Executive Officer at Verenium. “We believe that BP is the right company to make the investment needed to carry this forward and expedite the commercialization of the technology.”
BP will also become the sole investor in Vercipia Biofuels and Galaxy Biofuels; both 50-50 joint ventures of the two companies.
5 Comments »
SPEC Engineering
Will buyouts like this help save biofuels? Investments and buyouts by larger companies may be the saving grace we’re looking for to finance these large projects. On the flip side, this investment could help save BP’s public image as well.
james wolfram
What does this mean to the stockholders of verenium? The San Diego research facilities were those of the former company that Verenium took over years ago, Diversa. Diversa also had large culture collection from around the world, I help them get some in Russia. Who has that culture collection? Also Diversa, and I assume Verenium were producing a number of commercial products for bleaching paper, enzymatically as well as Phytase for animal foodstuffs. Who now owns those?
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