BP Joins Forces with Maersk to Invest in US-Based Bio-Methanol Start-Up

United Kingdom: A major player in the oil industry leads the most recent round of fundraising for a Los Angeles-based company. BP has announced a $10 million investment in WasteFuel, a California-based start-up focused on converting municipal and agricultural waste into eco-friendly fuels like Bio-Methanol. WasteFuel has previously secured funding from AP Moller-Maersk's venture arm, Maersk Growth. The company aims to collaborate with local strategic partners, including waste management firms, to establish several Bio-Methanol plants around the world, with its first project slated for Dubai. According to BP, WasteFuel has additional projects in the works.

BP and WasteFuel have signed a memorandum of understanding for BP to purchase the produced Bio-Methanol and collaborate on refining and improving production. In a statement, Philipp Schoelzel, VP of next-generation Biofuels at BP, said that working with WasteFuel would allow BP to optimise Bio-Methanol production and support efforts to reduce emissions in the shipping industry. BP has committed to producing more Biofuels, with a target of 100,000 barrels per day by 2030, as part of its efforts to decarbonise transportation. Gareth Burns, VP of BP Ventures, said that the WasteFuel projects would help address the increasing amount of global waste, while also promoting lower-carbon solutions for difficult-to-decarbonise sectors.

Biofuels are expected to play a crucial role in the shipping industry's decarbonisation efforts, as solid waste production grows globally. According to The World Bank, global solid waste production stands at 2 billion tonnes each year and is forecasted to increase to 3.4 billion tonnes by 2050. BP has stated that Bio-Methanol could be a significant solution for hard-to-abate sectors such as shipping in their efforts to reduce emissions and achieve decarbonisation.

BP has revealed that maritime transport contributes to 3% of global greenhouse gas emissions and accounts for around 90% of trade worldwide. To achieve net-zero goals, large companies in the shipping industry are transitioning to Methanol-ready ships. BP is taking steps towards establishing a supply of lower-carbon alternative fuels for the shipping sector and will leverage its trading proficiency to introduce WasteFuel's Bio-Methanol to the market.

BP p.l.c., formerly known as The British Petroleum Company p.l.c and BP Amoco p.l.c, is a multinational corporation specializing in the oil and gas industry. As one of the "supermajors" in this sector, it is among the largest global companies in terms of revenue and profits. BP has a vertically integrated business model and operates across all aspects of the oil and gas value chain including exploration, refining, distribution, marketing, power generation and trading.