BP cancels US cellulosic ethanol plans

UK-based fuel giant BP seems to have caved-in to biofuel market pressures (and investor pressures) as it announced today that it will end its pursuit of commercial-scale cellulosic ethanol production in the US.

BP said it is cancelling plans to build a commercial-scale cellulosic ethanol facility in Highlands County, Florida, and it will instead refocus its US biofuels strategy on research and development as well as licensing its biofuels technology. I guess there goes the promised 200 jobs in Florida...

Photo credit: BIO

The company originally planned to build the 36m gal/year cellulosic ethanol facility in 2008 with the intention of using 20,000 acres of energy cane crops for feedstock. The facility was expected to open in the fourth quarter of 2014.

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