BP invests in WasteFuel to study potential of bio-methanol

BP has invested $10m in WasteFuel, a California-based biofuels company, to research the potential of bio-methanol in hard-to-abate sectors like shipping.

BP said that solid waste production totals about 2bn metric tons annually and would increase to 3.4bn metric tons by 2050.

According to the company, WasteFuel’s deployment of anaerobic digestion and methanol production technologies will convert municipal and agricultural waste into viable lower-emission alternatives to traditional fuels, like bio-methanol.

BP is already working on establishing supplies of lower-carbon alternative fuels for the shipping sector and will look to bring WasteFuel’s bio-methanol to the market.

WasteFuel plans to develop multiple bio-methanol plants around the world in collaboration with local strategic partners including waste companies. The company already has a plethora of investors, one of them being shipping giant Maersk which is now joined by another giant.

Its first project will most likely be in Dubai and BP and WasteFuel already have a deal in place for BP to offtake the produced bio-methanol and to cooperate on the optimisation and improvement of bio-methanol production.