bp has announced an expansion of its investment in bioenergy with a commitment of US$10 million through bp ventures in a Series B investment round for WasteFuel, a California-based biofuels company.
WasteFuel specialises in converting bio-based municipal and agricultural waste into lower carbon fuels, such as bio-methanol, using proven and scalable technologies.
The global production of solid waste is expected to increase from two billion metric tons to 3.4 billion metric tons by 2050. WasteFuel aims to address this challenge by utilising anaerobic digestion and methanol production technologies to convert waste into viable lower-emission alternatives to traditional fuels, particularly bio-methanol. Bio-methanol has the potential to play a significant role in decarbonising hard-to-abate sectors like shipping, which accounts for approximately 90% of global trade while generating 3% of global greenhouse gas emissions.
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And bp, in its efforts to establish lower-carbon alternative fuels for the shipping industry, will leverage its trading expertise to bring WasteFuel’s bio-methanol to market. The two companies have entered into a memorandum of understanding, with bp committing to offtake the produced bio-methanol and collaborating on optimizing and improving bio-methanol production.
WasteFuel plans to develop multiple bio-methanol plants globally in partnership with local strategic partners, including waste companies. The first project is anticipated to be in Dubai, and the company has a pipeline of additional projects in development. The investment from bp ventures marks a significant milestone for WasteFuel in scaling up bio-methanol production to decarbonise the shipping sector.
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Bioenergy is one of bp’s five transition growth engines, with significant investment planned throughout the decade. The company aims to produce around 100,000 barrels per day of biofuels by 2030 to support the decarbonisation of the transport sector.
The investment from bp ventures is expected to contribute to the expansion of bio-methanol availability, enabling companies reliant on shipping to reduce their greenhouse gas emissions.
