BP has entered into a partnership with a biofuels company that specializes in producing transportation fuels from household waste.
BP said Monday that it signed a “major strategic partnership” that includes a $30 million equity investment in Fulcrum BioEnergy.
BP said that the partnership will accelerate the construction schedule for Fulcrum’s next renewable jet fuel plants.
Fulcrum’s first plant is currently under construction.
Fulcrum and Air BP, the aviation division of BP, have also agreed to terms on a 500 million gallon jet fuel offtake agreement.
The agreement will provide Air BP with 50 million gallons per year of low-carbon, drop-in jet fuel.
Air BP will also have the opportunity to provide fuel supply chain services for the blending, certification and delivery of Fulcrum’s jet fuel to commercial and military aviation customers.
“The aviation industry has set ambitious lower carbon goals. This agreement gives Air BP guaranteed access to low-carbon jet fuel to help our customers meet these goals. We are excited by the opportunities that this partnership offers,” Air BP CEO Jon Platt said.
The BP transaction marks Fulcrum’s fourth major corporate investment and partnership following similar deals with United Airlines, Waste Management and Cathay Pacific.
Fulcrum president and CEO E. James Macias said the BP deal will allow Fulcrum to accelerate development of its second and third plants.
California-based Fulcrum is focused on leading the development of a reliable and efficient process for transforming municipal solid waste into transportation fuels including jet fuel and diesel.
The privately held company will provide customers with low-cost, low-carbon drop-in fuel that is competitively priced with traditional petroleum fuel.
