BP exits Jatropha biofuel project to focus on Ethanol

BP Biofuels in BrazilBP said today that it has left a project to turn jatropha trees into biofuels to concentrate on producing sugarcane ethanol in Brazil and the U.S., and to advance research of biobutanol. BP was a 50 percent partner with D1 Oils Plc in a joint venture set up in 2007 to develop jatropha, a drought-resistant tree whose seeds produce oil for use in biodiesel production. D1 today said it had agreed to acquire BP’s stake in the project and would maintain the business until market conditions provide new capital investment.

The British oil producer is collaborating with U.S. researchers to spend about $500 million over 10 years on biofuels research. The company says it already supplies 10 percent of the world’s biofuel and expects the fuel to account for 11 percent to 19 percent of the world’s transport-fuel market by 2030.