BP and DuPont JV Acquires Ethanol Production Facility in Kansas

Butamax Advanced Biofuels LLC, a joint venture between BP and DuPont announced acquisition of ethanol plant in Kansas

United States: Butamax Advanced Biofuels LLC, a US based Joint venture between BP and DuPont, which was formed to commercialize bio-isobutanol as a transportation fuel, has announced the acquisition of Nesika Energy LLC and its ethanol producing plant in Scandia, Kansas.

As a part of the expansion strategy, Butamax would increase its bio-isobutanol production capacity while continuing ethanol production at the plant. Cheaper and lower-carbon substitute of isobutanol bio-isobutanol finds application across a wide range of industries due to superior compatibility and performance as a fuel. The company is channeling benefits from DuPont’s strong background of industrial biotechnology and the fuel market experience of BP at the Nesika site, to demonstrate the process and validate technological advancements.

The company is further planning to license the technology and move forward with the commercial scale production of bio-isobutanol, in order to strengthen the growing United States bio economy. The collaborative efforts of DuPont, BP and Butamax with the state of Kansas would result in several economic incentives and employment opportunities in the country.

TechSci Research depicts that the capacity expansion initiatives taken by the company would aid Butamax Advanced Biofuels LLC in catering to the demand of its customers in more efficient manner. Additionally, this would aid the company in consolidating its position as a market leader in the United States fuel-additives market.

According to the recently published report by TechSci Research, “United States Fuel Additives Market Forecast & Opportunities, 2020”, the US fuel additives market is projected to grow at a CAGR of more than 6% during 2015-20. Increasingly stringent environmental regulations, rising fuel consumption and escalating fuel prices have all significantly contributed to the growth of fuel additives market in the country. Presently, fuel ethanol accounts for a significant majority share in the country’s fuel additives market and this trend is expected to continue through 2020. The demand for fuel additives in diesel is driven by the increasing demand for Ultra Low Sulphur Diesel (ULSD) and bio-based diesel on account of imposition of stringent environment norms to control emissions from transport vehicles. Leading fuel additive manufacturing companies operating in the US include Archer Daniel Midland, Valero Energy Corporation, Lubrizol Corporation, BASF Corporation and Innospec Inc.