BP to fund Martek biodiesel research

BP and Columbia, Maryland-based American firm Martek Biosciences are forming a partnership to study the use of algae to convert sugar into biodiesel, the companies said. Converting biomass to fuel is an expensive venture, and finding the right microbe could potentially help lower costs. London-based BP will initially contribute US$10 million to the project. The deal is the latest in a series of research agreements between multinational energy companies and start-up alternative fuel makers as the industry looks for ways to diversify its supply base. If successfully commercialized, the BP-Martek tie-up will let both companies use algae to turn biomass refuse, such as sugar cane and wood chips, into biodiesel that can be used to power vehicles or further refined into cosmetic or pharmaceutical applications. The challenge for Martek is to find algae or related microbes that will convert biomass into fuel. (August 24, 2009)