Verenium Corp. is a pioneer in the development and commercialization of high-performance enzymes for use in industrial processes. The company currently sells enzymes it develops to customers globally for use in industries such as biofuels. For more information on Verenium, please visit its website at www.verenium.com.
BP and Verenium recently announced an agreement for BP Biofuels North America to acquire Verenium’s cellulosic biofuels business, including the company’s facilities in Jennings, LA and San Diego, CA for $98.3 million. BP will become the sole investor in both Vercipia Biofuels and Galaxy Biofuels. Both firms were previously 50/50 joint ventures between the two companies. BP believes it has the resources necessary to push the commercialization of the cellulosic biofuels technology forward.
As per the agreement, Verenium will retain its commercial enzyme business, including its biofuels enzymes products and also have the right to develop its own cellulosic enzyme program. In addition, the company will also retain select research and development capabilities, as well as rights to access select biofuels technology developed by BP using the technology it is acquiring from Verenium through this agreement.
This agreement should give both companies the flexibility to pursue the growth opportunities in the respective businesses. As a result of this transaction, Verenium will have the resources to grow its commercial enzyme business while maintaining strategic access to the emerging cellulosic ethanol market in the United States.