BP invests in Cellulosic Ethanol

The Wall Street Journal reports that BP has invested in a cellulosic ethanol plant. According to the article, BP is extending an existing partnership with Verenium Corp.

With the move announced Wednesday, BP has invested $112.5 million in Verenium and received a 50% stake in licensing the smaller company's technology. The larger money lies ahead. It is estimated that the Florida facility will cost between $250 million and $300 million. The partners said they plan to build another full-scale facility in the Gulf Coast soon.

It Looks like BP is using their deep pockets at a time when small players can't get access to capital because of the double threat of low fuel prices and the credit crisis.