BP will work with Verenium to produce grass-based ethanol in the US by 2010, and will team up with Dupont to produce biobutanol in Britain by 2012.

According to Philip New, chief executive of biofuels at BP, the oil company will work with Verenium, a cellulosic ethanol developer, to produce grass-based ethanol in the United States. Cellulosic ethanol is usually made from natural, non-food feedstocks, such as sugarcane bagasse and wood products, and has relatively high oxygen content, making it a convincingly clean alternative to fossil fuels.

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