BP invests $30m in Fulcrum BioEnergy, signs jet fuel offtake agreement

Fulcrum BioEnergy and BP have signed a major strategic partnership that includes a $30 million (€27m) equity investment in Fulcrum by BP.

With Fulcrum's first plant under construction, the company says the partnership accelerates the construction schedule for its next renewable jet fuel plants.

Fulcrum and Air BP, the aviation division of BP, have also agreed to terms on a 500 million gallon jet fuel offtake agreement that will provide Air BP with 50 million gallons per year of low-carbon, drop-in jet fuel.

Air BP will also have the opportunity to provide fuel supply chain services for the blending, certification, and delivery of Fulcrum's jet fuel to commercial and military aviation customers.

The transaction represents Fulcrum's fourth major corporate investment and partnership following similar deals with United Airlines, Waste Management, and Cathay Pacific.

"Entering into this strategic relationship with a global oil and gas company enhances the value of Fulcrum's waste to fuel platform," said E. James Macias, Fulcrum's president and CEO.

"This allows us to accelerate development of our second and third plants. With BP's expertise in refining and fuel services, their partnership provides value beyond the investment, fuel offtake, and logistic services," he added. 

With the support of BP and its other strategic partners, Fulcrum is accelerating the development of additional, larger-scale projects across North America that will have the capacity to produce more than 300 million gallons annually of renewable transportation fuels.

Jet fuel produced from Fulcrum's plants will be cost-competitive with fossil jet fuel, providing airlines with an attractive, low-carbon alternative, the company says.

Fulcrum's jet fuel can also provide significant environmental and sustainability benefits, including reducing greenhouse gas emissions by more than 80% compared to fossil jet fuel.