Wisconsin Ag Connection - National/World News - BP May Expand Biofuels Partnership

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BP May Expand Biofuels Partnership
USAgNet - 11/15/2007

U.S. chemical maker DuPont Co. said it plans three additional equity investments in biofuels facilities in a bid to establish a regional presence in new markets.

"We are looking at three other investments similar to the one that we made in the UK that would establish ourselves in important regions," John Ranieri, vice president of DuPont biofuels told an investor meeting.

The company is currently in negotiations with BP over the new investments, Ranieri said.

Reuters News Service reports that DuPont expects revenue from bio-based products of about $800 million by 2010 and $2.3 billion by 2012. Biofuels are expected to form the bulk of that revenue stream, contributing about $1.2 billion by 2012.

Wilmington, Delaware-based DuPont already has a 10 percent stake in an ethanol facility in Great Britain, in partnership with BP and British Sugar. The companies plan to convert that plant to a biobutanol facility in a few years.

The revenue targets include revenue from direct DuPont sales as well as revenues in which the company would have either a royalty interest or equity interest.