BP to Produce Cellulosic Ethanol by 2012

BP and Verenium announced a new joint venture to produce cellulosic ethanol on a commercial scale by 2012.

The initiative aims to begin construction on a large-scale cellulosic ethanol refinery in Highlands County, Florida, by 2010. The plant will produce 36 million barrels of ethanol per year. Cellulosic ethanol is a biofuel produced from wood, grasses or non-edible parts of plants.

The two firms are kick-starting their 50/50 venture with a $45 million investment.

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