Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

Meet one company that loves BP

By Ben Rooney, staff reporter


NEW YORK (CNNMoney.com) -- Despite BP's current status as one of the most hateable companies around, shareholders in a little-known biofuels technology company are probably quite pleased with the oil giant at the moment.

Shares of Verenium (VRNM), an industrial enzyme maker, spiked 42% after BP announced plans to buy its cellulosic biofuels business for $98.3 million.

Under the terms of the deal, BP will acquire Verenium facilities in Louisiana and California, as well as rights to its cellulosic biofuels and enzyme technology.

Verenium, which has had a partnership with BP since February 2009, will retain control of its core business and will continue to collaborate with BP on research and development.

Carlos Riva, Verenium's chief executive, said in a statement that he was pleased with the deal and called BP "the right company" to invest in biofuels technology.

Philip New, chief executive of BP Biofuels, called the company's existing partnership with Verenium "fruitful" and said the acquisition will help expand BP's ability to deliver "low cost, low carbon, sustainable biofuels, at scale."

"This acquisition demonstrates BP's intent to be a leader in the cellulosic biofuels industry in the U.S.," he said.

BP, formerly known as British Petroleum, launched a marketing campaign in 2000 with the slogan "beyond petroleum." While BP has been developing ethanol and other alternative fuels for years, BP continues to reap most of its profits from the oil industry, however.

The purchase comes as BP conducts tests on a new cap it placed on a ruptured well in the Gulf of Mexico, which has been leaking oil for nearly three months.

Despite this relatively small deal, BP (BP) is expected to sell more oil assets to cover costs related to the spill. It pledged last month to put $20 billion in an escrow account for liability payments.  To top of page

Search for Jobs

Index Last Change % Change
Dow 20,765.84 22.84 0.11%
Nasdaq 5,855.81 -10.14 -0.17%
S&P 500 2,362.42 -2.96 -0.13%
Treasuries 2.42 -0.01 -0.37%
Data as of 3:18pm ET
Company Price Change % Change
Bank of America Corp... 24.77 -0.01 -0.04%
Chesapeake Energy Co... 5.96 -0.12 -1.99%
Freeport-McMoRan Inc... 13.72 -0.41 -2.87%
Facebook Inc 136.03 2.31 1.73%
General Electric Co 30.33 -0.19 -0.62%
Data as of 3:03pm ET
Sponsors

Sections

Powerball jackpot tops $400 million, as change in the game to create longer odds against winning allows for more frequent big prizes. More

Minutes from the Federal Reserve's January meeting showed some Fed leaders eying a potential rate increase in March. More

The promises of 5G have been swirling for the last few years -- but now Verizon is bringing the mobile broadband service a little closer to reality. More

America's three biggest banks -- JPMorgan Chase, Bank of America and Wells Fargo -- earned over $6.4 billion last year from ATM and overdraft fees, according to an analysis by CNNMoney. More