Verenium and BP are extending their joint development contract for another month as they continue more long term negotiations in the partnership to develop and commercialize cellulosic ethanol.

The two companies have extended the initial 18-month joint development program established in August 2008, which was scheduled today until March 1, 2010.

BP and Verenium will continue their ongoing joint development work to accelerate the development and commercialization of cellulosic ethanol, while the two parties continue to negotiate the terms of a multi-year extension of their collaboration program. Verenium will receive an additional $2.5 million from BP to co-fund various scientific and technical initiatives for the month of February.