BP backs biofuel startup WasteFuel with $10 million investment

British oil and gas company BP has invested $10 million in US-based biofuel producer WasteFuel, which plans to develop renewable methanol conversion plants in Dubai.

PHOTO: Model of Maersk's 17,000 TEU methanol-powered container ship. A.P. Moller-Maersk

BP will also be one of the off-takers of the bio-methanol produced by WasteFuel, the company says. The oil major joins a long list of prominent investors backing WasteFuel, including Maersk, Marc Benioff’s TIME Ventures, Guy Oseary, and Aileen Getty.

WasteFuel expects to use the investments to develop a network of low-carbon bio-methanol facilities, of which Dubai is likely to be the first. At these plants, the company estimates it will produce 100 mt/day of bio-methanol by 2030 using municipal waste.

The investment from BP comes at the same time as the International Maritime Organization is meeting to consider stricter emissions reduction targets for the shipping industry, which, if implemented, could lead to a surge in demand for alternative marine fuels.

“WasteFuel projects will look to help with the growing volumes of global waste, whilst advancing the development of lower carbon solutions for hard-to-abate sectors,” said the Vice President of BP Gareth Burns.

By Debarati Bhattacharjee

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