BP and Verenium will continue their ongoing joint development work to accelerate the development and commercialization of cellulosic ethanol, while the two parties continue negotiations for a longer-term collaboration. Verenium will receive an additional $2.5m from BP to co-fund the cellulosic ethanol program for the month of March.

Carlos Riva, president and CEO of Verenium, said: “Both Verenium and BP remain committed to advancing our cellulosic ethanol technology and agreeing on an appropriate structure for doing so.”

Verenium possesses integrated capabilities and technology in pre-treatment, novel enzyme development, fermentation and project development for next-generation biofuels. Through Vercipia, a 50-50 joint venture with BP, the company is moving to commercialize cellulosic technology for the production of ethanol from an array of non-food feedstocks, including energy crops, agricultural waste and wood products.