BP are involved in alternative energies and fuels sources, Biofuels, Wind and Solar Energy amongst others.

During this last week I have seen that they are making a bigger move into Cellulosic ethanol, a biofuel produced from plants, grass, wood chips and the like. It is especially interesting because it can be made from inedible grasses and waste product from other agricultural processes. This has obvious advantages over something like Corn ethanol which uses crops required for human and livestock consumption.

BP is working with Verenium to develop a facility that would become the largest Cellulosic ethanol facility in the world, 25 times larger than another planned facility between the two. I guess the idea here is that producing the product on a very large scale is the best way to improve cost. Lower cost leading to more demand.

BP certainly appear to be leading the way as the Oil Majors look to invest into alternative fuels, and as the current climate is tight for most companies, it is a great time for the cash rich Majors to be investing.

BP Cellulosic ethanol Press Article

I do not hold BP or Verenium, although will be watching the prices of both closely.