BP/DuPont biobutanol takeover gets EU approval
The European Commission has approved the proposed creation of a biobutanol production technology joint venture between BP Biofuels and US chemical manufacturer DuPont, resulting in a dual takeover of US company Biobutanol LLC.
The companies are on track to develop a biobutanol production plant in the UK. It will begin as a 420 million litre a year ethanol plant with operations expected mid-2010 in Hull, UK. The partnership will then convert this to biobutanol when the technology is ready.
Under the EU Merger Regulation, mergers or concentrations with a community dimension are subject to exclusive examination by the commission, which found that the BP Biofuels/DuPont transaction would not give rise to horizontal overlaps between the activities of the parent companies, as they are currently not active in the licensing of any production technologies for biobutanol or the supply of biobutanol.
The commission also ruled out any competition concerns due to vertical relationships, given BP’s limited position on the downstream markets of gasoline supply, both at EU and national levels.
The joint venture will serve to develop and commercialise technologies for biobutanol production, operations mainly occurring within the US.
BP Biofuels also has a jointly-owned commercial cellulosic ethanol project in Highlands County, Florida, with cellulosic ethanol and enzyme developer Verenium. The 36 mgy facility will primarily use varieties of sorghum and energy cane as a feedstock.
The companies are on track to develop a biobutanol production plant in the UK. It will begin as a 420 million litre a year ethanol plant with operations expected mid-2010 in Hull, UK. The partnership will then convert this to biobutanol when the technology is ready.
Under the EU Merger Regulation, mergers or concentrations with a community dimension are subject to exclusive examination by the commission, which found that the BP Biofuels/DuPont transaction would not give rise to horizontal overlaps between the activities of the parent companies, as they are currently not active in the licensing of any production technologies for biobutanol or the supply of biobutanol.
The commission also ruled out any competition concerns due to vertical relationships, given BP’s limited position on the downstream markets of gasoline supply, both at EU and national levels.
The joint venture will serve to develop and commercialise technologies for biobutanol production, operations mainly occurring within the US.
BP Biofuels also has a jointly-owned commercial cellulosic ethanol project in Highlands County, Florida, with cellulosic ethanol and enzyme developer Verenium. The 36 mgy facility will primarily use varieties of sorghum and energy cane as a feedstock.
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