Fulcrum Bioenergy, a US-based developer of technology that turns household waste into fuel, has attracted $30m in investment from oil and gas company BP as part of a strategic partnership.
The agreement means BP’s aviation subsidiary Air BP will receive 50 million gallons of low-carbon, drop-in jet fuel per year for a total of 500 million gallons. Air BP will also be able to provide supply chain services for the blending, certification and distribution of fuel to commercial and military clients.
Founded in 2007, Fulcrum has developed a process that converts municipal solid waste into jet fuel and diesel. Thecompany’s first jet fuel facility is currently under construction and the funding will support the building of additional plants.
Airline United provided $30m in funding for Fulcrum in June 2015, after its peer Cathay Pacific Airways had invested an undisclosed amount the previous year.
Fulcrum had previously raised at least $118m in equity and $70m in debt financing, including $93m in series C funding from investors including WM Organic Growth, a subsidiary of garbage management company Waste Management, and VC firms USRG Management Company and Rustic Canyon Partners in 2011.
The company filed for an initial public offering in 2012, before filing several amendments and eventually withdrawing the application in November the same year.
Jon Platt, chief executive at Air BP, said: “We are delighted to be a strategic partner with Fulcrum – a pioneer in the development and production of lower-carbon jet fuel from municipal solid waste.
“The aviation industry has set ambitious lower carbon goals. This agreement gives Air BP guaranteed access to low-carbon jet fuel to help our customers meet these goals. We are excited by the opportunities that this partnership offers.”