Fulcrum Bioenergy further grows its business with major investment from BP
One of the world’s largest suppliers of aviation fuel products and services, Air BP, has entered into a major strategic partnership with Fulcrum BioEnergy that includes a US$30 million equity investment by BP in Fulcrum that will help the latter further grow and develop its business.
Based in Pleasanton, California in the US, Fulcrum is a leader in the development of a reliable and efficient process for transforming municipal solid waste or household garbage into transportation fuels including jet fuel and diesel.
Fulcrum’s first plant is still under construction, but the partnership with Air BP, the aviation division of British multinational oil and gas company BP, accelerates the construction schedule for Fulcrum’s next renewable jet fuel plants. The company’s plants will provide customers with low-cost, low-carbon drop-in fuel that is competitively priced with traditional petroleum fuel.
According to E. James Macias, Fulcrum’s President and Chief Executive Officer of Fulcrum, entering into a strategic relationship with a global oil and gas company enhances the value of Fulcrum’s waste to fuel platform and allows them to accelerate the development of their second and third plants.
The two companies have also agreed to terms on a 500 million gallon jet fuel offtake agreement that will provide Air BP with 50 million gallons per year of low-carbon, drop-in jet fuel. Air BP will also have the opportunity to provide fuel supply chain services for the blending, certification and delivery of Fulcrum’s jet fuel to commercial and military aviation customers.
This transaction represents Fulcrum’s fourth major corporate investment and partnership following similar deals with United Airlines, Waste Management and Cathay Pacific.
Fulcrum has also entered into long-term agreements with Waste Connections and Tesoro 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.
Supported by its 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.
