Energy Procurement, GHG Emissions, Industrial - November 14, 2016
BP makes $30M investment in biofuel company
BP Plc has made a $30 million investment in Fulcrum BioEnergy, a company that develops and produces of low-carbon jet fuel.
The company on Nov. 8 announced the creation of a strategic partnership between Fulcrum and its BP Ventures and Air BP businesses. As an equity investor, BP said it secured a 10-year offtake agreement with Fulcrum for 50 million U.S. gallons per year from their plants under development across North America.
As a preferred supply chain partner, Air BP will distribute and supply biojet into aircraft at key hubs across North America.
"We have a deep understanding of our customers’ challenges to achieve their lower carbon goals. This agreement gives Air BP guaranteed access to product which will help meet these challenges," Air BP CEO Jon Platt said in a news release. "Securing this supply helps secure the future competitiveness of Air BP, and our place as a leader in the industry."
Fulcrum creates fuel from municipal solid waste. The company has secured long-term access to large volumes of waste feedstock and is actively developing its plan to build waste-to-fuel plants in North America, initially, with growth potential around the world, according to BP's news release. Fulcrum expects to start developing its first plant in 2017.
Sustainability, especially in the area of energy and energy production-related emissions has been a key focus area for climate activists and, increasingly, investors, in recent years. The finalization of the Paris climate agreement, which went into full effect Nov. 4, has brought an every sharper focus on the topic and responses from some of the world's largest fossil fuel companies.