BP Biofuels is now the official proud owner of Verenium’s cellulosic biofuels business. The companies announced the closing today of the $98.3 million transaction announced on July 15, 2010.

Under the sale, BP acquires the Jennings, LA biofuel pilot plant and the demonstration facility, as well as the San Diego R&D facilities. BP also receives Vereniums cellulosic biofuels and enzyme technologies and related IP. Verenium retains its commercial enzyme business, including its biofuels enzymes products and has the right to develop its own lignocellulosic enzyme program. Verenium 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.

“We are very pleased that our strategic development partnership with BP has successfully advanced our cellulosic ethanol technology to the cusp of commercialization,” said Carlos A. Riva, President and Chief Executive Officer at Verenium. “We believe that BP is the right company to make the investment needed to carry this forward and expedite the commercialization of the technology.”

BP will also become the sole investor in Vercipia Biofuels and Galaxy Biofuels; both 50-50 joint ventures of the two companies.