British Petroleum to acquire Verenium's biofuels business for $95 million

British Petroleum has agreed to buy the biofuels business of US-based Verenium Corporation for $98.3 million, as it increases its focus on reducing over dependence on fossil fuel business.

Under the agreement, BP Biofuels North America will acquire Verenium's cellulosic biofuels business, including the company's facilities in Jennings, Los Angeles and San Diego, California for $98.3 million.

Verenium will, however, retain its commercial enzyme business, including validated technology platform that applies to all business segments, including biofuels.

Verenium will also retain the right to develop its own lignocellulosic enzyme programme as also select R&D capabilities. It will also have rights to access select biofuels technology developed by BP using the technology it is acquiring from Verenium agreement.

"We are very pleased that our strategic development partnership with BP has successfully advanced our cellulosic ethanol technology to the cusp of commercialisation," said Carlos A Riva, president and chief executive at Verenium. "We believe that BP is the right company to make the investment needed to carry this forward and expedite the commercialisation of the technology."

"This agreement should give both companies the flexibility to pursue the growth opportunities in the respective businesses and achieve goals in the near-term. 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," added Riva.