BP and Verenium form cellulosic ethanol venture

Energy giant BP and Verenium Corp. of Cambridge said they have formed a 50-50 joint venture to develop and commercialize cellulosic ethanol from non-food feedstocks as advanced biofuels.

Verenium is focused on developing and commercializing cellulosic ethanol.

"The two companies have agreed to commit $45 million in funding and assets to the joint venture company," the companies said in a press release. "This collaboration is intended to progress the development of one of the nation's first commercial-scale cellulosic ethanol
facilities, located in Highlands County, Florida and to create future opportunities for leveraging cellulosic ethanol technologies."

The joint venture expects to break ground on the Florida site in 2010, the press release said, and the estimated construction cost for this 36 million gallon-per-year facility is between $250 million and $300 million. Production from this plant is expected to begin in 2012.

To read the press release, please click here.
(By Chris Reidy, Globe staff)