BP shelves US cellulosic ethanol plant construction
BP has abandoned its plans to construct a commercial-scale cellulosic ethanol plant in Highlands County, Florida, US.
The company has stopped the ethanol plant construction to refocus its US biofuels strategy on research and development and to license biofuels technology.
BP communications vice president Geoff Morrell said: "Given the large and growing portfolio of investment opportunities available to BP globally, we believe it is in the best interest of our shareholders to redeploy the considerable capital required to build this facility into other more attractive projects."
BP had initially announced the Florida facility in 2008 with a plan to convert thousands of acres of energy crops into 36mgpy of cellulosic ethanol.
Despite its ethanol plant cancellation, BP is carrying on investments and operations at its San Diego biofuels research facility and Jennings demonstration plant, both in the US, to further develop cellulosic biofuel technologies to commercially license it in the US and across the globe.
BP has invested more than $52bn in capital spending between 2007 and 2011, according to the company.