Air BP and BP Ventures announce US$30 million investment in Fulcrum BioEnergy
UK-headed oil major BP has announced a strategic partnership between its BP Ventures and Air BP businesses with Fulcrum BioEnergy, a developer of low-carbon jet fuel, in which BP will invest US$30 million. BP has also secured a 10-year offtake agreement for 50 million US gallons (≈ 190 million litres) annually, from Fulcrum's North American plants under development and, 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. Securing this supply helps secure the future competitiveness of Air BP, and our place as a leader in the industry, commented Jon Platt, CEO, Air BP in a statement.
Fulcrum has developed and demonstrated a reliable and efficient process for producing low-cost, sustainable biojet from municipal solid waste (MSW). 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’s first plant outside Reno, Nevada (NV) is currently under construction.
BP is committed to supporting a transition to a lower carbon economy. With support from two of Air BP’s strategic customers, Cathay Pacific Airways, and United Airlines, Fulcrum is well advanced in its goal to produce and supply scalable biojet, and BP is excited by the opportunities that this partnership offers, said Tufan Erginbilgic, CEO of BP’s downstream segment.
This transaction represents Fulcrum’s fourth major corporate investment and partnership following similar deals with United Airlines, Waste Management, and Cathay Pacific. In building strong strategic partnerships with industry leaders, 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 (USDA) that further support the growth of Fulcrum’s business enterprise.
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. 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, said E. James Macias, President, and Chief Executive Officer, Fulcrum BioEnergy.
About Air BP
Air BP, the aviation division at BP, is one of the world’s largest suppliers of aviation fuel products and services currently supplying over seven billion gallons of jet fuel per annum to customers around the world.
Through its operations, Air BP supplies jet fuel at more than 800 locations in 50 countries – fueling more than 6 000 flights every day.