BP announces investment of $30 MM in biojet producer Fulcrum
BP subsidiaries BP Ventures and Air BP businesses have created a strategic partnership with Fulcrum BioEnergy, a pioneer in the development and production of low-carbon jet fuel, in which BP will invest $30 MM.
As an equity investor, BP has secured a 10 year offtake agreement with Fulcrum for 50 MMgpy, from their plants under development across North America. In addition, 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,” said Jon Platt, CEO, Air BP. “Securing this supply helps secure the future competitiveness of Air BP, and our place as a leader in the industry.”
“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,” said E. James Macias, Fulcrum’s President and Chief Executive Officer. “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,” added Macias.
Fulcrum has developed and demonstrated a reliable and efficient process for producing low-cost, sustainable biojet from municipal solid waste. The company has secured long-term access to large volumes of MSW feedstock and is actively developing its plan to build waste-to-fuel plants in North America, initially, with growth potential around the world. Fulcrum expects to start developing its first plant in 2017.
In building strong strategic partnerships with industry leaders such as Waste Management, Waste Connections, Cathay Pacific, United Airlines, Tesoro and now BP, Fulcrum has entered into long-term agreements for feedstock, fuel offtake and fuel logistic services to advance its development platform. The company has also entered into alliances with the US Air Force, US Navy and the US Department of Agriculture that further support the growth of Fulcrum's business enterprise.
With the support of BP and its other strategic partners, Fulcrum is accelerating the development of additional, larger-scale projects across North America that will have the capacity to produce more than 300 million gallons annually of renewable transportation fuels. Jet fuel produced from Fulcrum's plants will be cost competitive with fossil jet fuel, providing airlines with an attractive, low-carbon alternative. Fulcrum's jet fuel will also provide significant environmental and sustainability benefits, including reducing greenhouse gas emissions by more than 80% compared to fossil jet fuel.
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