BP has announced the creation of a strategic partnership of its Air BP and BP Ventures businesses with Fulcrum BioEnergy, a pioneer in the development and production of low-carbon jet fuel. BP has said that it will invest US$30m in Fulcrum.
As an equity investor, BP will receive 50 million US gallons of biofuel from Fulcrum per year over the next decade from its plants in North America. It will also be a preferred supply chain partner, providing biojet fuel through its Air BP network.
Fulcrum’s low-cost, sustainable biofuel is derived from municipal solid waste, and the company has access to large ongoing supplies. Its first production plant is currently under construction.
Jon Platt, CEO of Air BP, said, “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. Securing this supply helps the future competitiveness of Air BP, and our place as a leader in the industry.”
E James Macias, president and CEO of Fulcrum, added, “We’re excited to be entering into this multi-faceted strategic relationship with BP, a recognized leader in the supply of fuel products and services to the global aviation industry. This partnership will accelerate Fulcrum’s ability to produce and deliver low-carbon, low-cost jet fuel from Fulcrum plants located across North America to our commercial and military aviation customers.”