BP (BP.LN) and Martek Biosciences Corporation, Tuesday announced the signing of a joint development agreement, or JDA, to work on the production of microbial oils for biofuels applications. The partnership combines a broad technology platform and operational capabilities to advance the development of a step-change technology for the conversion of sugars into biodiesel.
MAIN FACTS:
-Under the terms of the multi-year agreement, Martek and BP will work together to establish proof of concept for large-scale, cost effective microbial biodiesel production through fermentation.
-BP has agreed to contribute up to $10 million to this initial phase of the collaboration which leverages Martek's significant expertise in microbial oil production and BP's production and commercialization experience in biofuels as the platform for the joint development effort.
-Martek will perform the biotechnology research and development associated with this initial phase, whilst BP will contribute to its integration within the biofuels value chain.
-All intellectual property owned prior to the execution of the JDA will be retained by each respective company, and all intellectual property developed during the JDA will be owned by BP, with an exclusive licence to Martek for application and commercialization in nutrition, cosmetic and pharmaceutical applications.
-Additionally, each party is entitled to certain commercial payments from technology commercialized in the other party's field.
-The sugar to biodiesel pathway uses advanced biological science to convert sugars derived from biomass into lipids using unique fermentation micro-organisms; the lipids are then converted into fuel molecules through chemical or thermocatalytic processes.