BP Ventures invests $10 million in WasteFuel to convert waste into low-emission fuel.

The corporate venture capital arm of BP Plc, bp Ventures, is investing $10 million in California-based startup WasteFuel, which aims to convert uneaten food and other waste into low-emission fuel. WasteFuel specializes in converting municipal and agricultural waste into sustainable energy, including biomethanol for shipping. BP is actively pursuing biofuel production and aims to deliver around 100,000 barrels per day by 2030 to help decarbonize transportation.

The shipping industry is responsible for almost 3% of man-made CO2 emissions and organizations are now discussing new emissions cuts targets. Methanol, which can significantly reduce CO2 emissions, is being considered as a potential replacement for petroleum-derived marine fuels. Several shipping giants, including AP Moller-Maersk and CMA CGM, have already made substantial investments in methanol. WasteFuel has chosen Dubai as its initial project location and has plans for further expansion. The company has a letter of intent with BP for the oil giant to take over the biomethanol produced and collaborate on improving biomethanol production from waste.

Trevor Neilson, WasteFuel’s CEO, believes that waste is a valuable resource, comparable to the discovery of oil in Saudi Arabia by Jean Paul Getty. He anticipates tremendous demand for waste fuel, particularly in the shipping industry. WasteFuel has attracted investments from other major players, including Maersk, Marc Benioff’s TIME Ventures, and philanthropist Aileen Getty. While the demand for biomethanol is high, WasteFuel expects its primary use to be in shipping.

This investment by BP Ventures demonstrates the company’s commitment to developing sustainable energy solutions. By investing in WasteFuel’s innovative waste-to-fuel technology, BP aims to contribute to the decarbonization of transportation and reduce the shipping industry’s carbon footprint. The partnership between BP and WasteFuel will pave the way for more efficient production of biomethanol from waste, further supporting the transition towards cleaner and greener energy sources.

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