BP and Verenium Corporation have announced the creation of a strategic partnership to accelerate the development and commercialization of cellulosic ethanol.

According to a Verenium press release, the partnership “combines a broad technology platform and operational capabilities in an effort to advance the development of a portfolio of low-cost, environmentally sound cellulosic ethanol production facilities in the United States, and potentially throughout the world.”

Under the initial phase of the alliance, Verenium will receive $90 million in funding from BP over the next 18 months for rights to technology within the partnership.

“BP is very pleased to be entering this important relationship with Verenium. We believe energy crops like sugar cane, miscanthus and energy cane are the best feedstocks to deliver economic, sustainable and scaleable biofuels to the world. This deal puts us at the front of the cellulosic biofuels game,” said Sue Ellerbusch, president of BP Biofuels North America.