BP Biofuels closes $98.3m deal to buy Verenium Corp

September 3, 2010

BP has closed its $98.3 million acquisition of Verenium Corporation, the cellulosic biofuels technology firm based in Cambridge, Massachusetts.

The oil giant’s BP Biofuels North America division has acquired Verenium’s biofuels business, along with cellulosic enzyme technology and all related intellectual property rights.

The deal hands BP Verenium’s pilot plant and demonstration-scale facility in Jennings, Louisiana, along with its research and development facilities in San Diego, California.

Verenium said BP will retain “select personnel” required to continue the cellulosic biofuels development program.

It has also become sole owner of Vercipia Biofuels and Galaxy Biofuels, the two 50-50 joint ventures established by BP and Verenium.

The acquisition was not for the entire Verenium business, which retains its commercial enzyme business that includes enzyme products for the biofuels sector. Verenium said it also retains the right to develop its own cellulosic enzyme program.

Verenium keeps select research and development capabilities, and has the option to access biofuels technology developed by BP using Verenium’s original technology.

UBS Investment Bank acted as financial advisor to Verenium in connection with this transaction.