Verenium will retain its commercial enzyme business, including its biofuels enzymes products and have the right to develop its own lignocellulosic enzyme program. The company will also retain select R&D capabilities, as well as rights to access select biofuels technology developed by BP using the technology it is acquiring from Verenium through this agreement.
Verenium will retain/receive the core commercial enzyme business, including the personnel and supporting technology required to develop the business; $98.3m payment from BP; $10.8m in cash (currently restricted) to be released upon assignment of its lease for the San Diego facility to BP; the ability to access select biofuels products developed by BP; and the ability to transition out of the San Diego facility over the next two years.
BP will become the sole investor in Vercipia Biofuels, a 50-50 joint venture formed by BP and Verenium in February 2009, and will independently manage all of Vercipia’s activities going forward. Similarly, Galaxy Biofuels, a 50-50 joint development company owned by BP and Verenium, will be owned 100% by BP. This transaction is expected to close in the third quarter of 2010.
