Air BP and BP Ventures to invest in biojet fuel producer Fulcrum
Air BP and BP Ventures have entered a strategic partnership with Fulcrum BioEnergy to help develop and produce low-carbon jet fuel.
As part of the deal, UK-based BP will invest $30m in Fulcrum BioEnergy.
As an equity investor, BP has also signed a ten-year offtake agreement with Fulcrum for 50 million US gallons annually, from Fulcrum’s plants that are under development across North America.
Air BP will also distribute and supply biojet into various aircraft at major hubs throughout North America as a preferred supply chain partner.
Air BP CEO Jon Platt said: “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.
“Securing this supply helps secure the future competitiveness of Air BP, and our place as a leader in the industry.”
Fulcrum has already developed a process for producing low-cost, sustainable biojet from municipal solid waste (MSW).
In addition, the company has won long-term access to large volumes of MSW feedstock and is currently building its first waste-to-fuel plant in North America.
Fulcrum BioEnergy president and CEO E. James Macias said: “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."
Air BP’s strategic customers such as Hong-Kong’s Cathay Pacific Airways and United Airlines have also supported the initiative.
Image: Deal signing between BP and Fulcrum BioEnergy. Photo: courtesy of BP.