BP Biofuels takes over ethanol process developed by UF

By Anthony Clark
Business editor


Published: Wednesday, July 21, 2010 at 4:52 p.m.
Last Modified: Wednesday, July 21, 2010 at 4:52 p.m.
While the eyes of the world are focused on BP's activities in the Gulf, the company's various divisions continue to conduct business as usual, including a recent deal that includes technology licensed from the University of Florida.


BP Biofuels of North America entered an agreement to acquire Verenium Corporation's cellulosic biofuels business for $98.3 million, the companies announced last week.

That includes Cambridge, Mass.-based Verenium's technology that uses enzymes to produce ethanol from woody and fibrous materials, a process developed by UF Institute of Food and Agricultural Sciences microbiologist Lonnie Ingram.

BP will take over a demonstration plant in Jennings, La., a research and development facility in San Diego and is building a biofuels plant in Highlands County.

The license has so far produced "modest milestone payments" for UF, said David Day, director of the Office of Technology Licensing.

"The idea all along has been that, given where energy is going in this world and this country, one of these days this will be a significant royalty stream for UF, and for the state and nation a significant way to lessen dependence on foreign oil," he said.

Ingram's invention was originally licensed to BC International, which was in UF's biotech incubator in Alachua for seven years. BC was acquired by Celunol Corp., which merged with San Diego-based Diversa Corp. to form Verenium, after which the Alachua research and development functions were moved to San Diego in 2007.

Anthony Clark is business editor at the Sun. He can be reached at anthony.clark@gvillesun.com or 352-374-5094 begin_of_the_skype_highlighting 352-374-5094 end_of_the_skype_highlighting.