BP buys Verenium’s biofuels business for $98m
Energy company BP Biofuels North America is to acquire Verenium’s cellulosic biofuels business.
Under the terms of the agreement BP Biofuels’ investment of $98.3 million (€76.4 million) will purchase Verenium’s facilities in Jenninigs, LA, US, including the pilot plant and the demonstration-scale facility; the San Diego, California-based R&D facilities; the company’s cellulosic biofuels technology; and its enzyme technology.
Verenium will keep its commercial enzyme business, including its biofuels enzymes products; have the right to develop its own lignocellulosic enzyme programme and; retain the rights to access select biofuels technology developed by BP using the technology it is acquiring from Verenium through the agreement. In addition Verenium will receive the $98.3 million payment plus $10.8 million in cash that will be released upon assignment of its lease for the San Diego plant to BP.
‘This agreement should give both companies the flexibility to pursue the growth opportunities in the respective businesses and achieve goals in the near term,’ Verenium’s president and CEO Carlos Riva says. ‘As a result of this transaction Verenium will have the resources to grow our commercial enzyme business while maintaining strategic access to the emerging cellulosic ethanol market in a manner that better fits our resources.’
As for Vercipia Biofuels and Galaxy Biofuels, two 50-50 joint development companies owned by BP and Verenium, Galaxy will now be fully owned by BP, while the company will become the sole investor in Vercipia and independently manage all of its activities.
Philip New, CEO of BP Biofuels, comments: ‘This acquisition demonstrates BP’s intent to be a leader in the cellulosic biofuels industry in the US.’ He continues: ‘By acquiring Verenium’s cellulosic biofuels technologies, BP Biofuels should be well placed to accelerate the delivery of low cost, low carbon, sustainable biofuels at scale.’
Under the terms of the agreement BP Biofuels’ investment of $98.3 million (€76.4 million) will purchase Verenium’s facilities in Jenninigs, LA, US, including the pilot plant and the demonstration-scale facility; the San Diego, California-based R&D facilities; the company’s cellulosic biofuels technology; and its enzyme technology.
Verenium will keep its commercial enzyme business, including its biofuels enzymes products; have the right to develop its own lignocellulosic enzyme programme and; retain the rights to access select biofuels technology developed by BP using the technology it is acquiring from Verenium through the agreement. In addition Verenium will receive the $98.3 million payment plus $10.8 million in cash that will be released upon assignment of its lease for the San Diego plant to BP.
‘This agreement should give both companies the flexibility to pursue the growth opportunities in the respective businesses and achieve goals in the near term,’ Verenium’s president and CEO Carlos Riva says. ‘As a result of this transaction Verenium will have the resources to grow our commercial enzyme business while maintaining strategic access to the emerging cellulosic ethanol market in a manner that better fits our resources.’
As for Vercipia Biofuels and Galaxy Biofuels, two 50-50 joint development companies owned by BP and Verenium, Galaxy will now be fully owned by BP, while the company will become the sole investor in Vercipia and independently manage all of its activities.
Philip New, CEO of BP Biofuels, comments: ‘This acquisition demonstrates BP’s intent to be a leader in the cellulosic biofuels industry in the US.’ He continues: ‘By acquiring Verenium’s cellulosic biofuels technologies, BP Biofuels should be well placed to accelerate the delivery of low cost, low carbon, sustainable biofuels at scale.’
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