TWO forward-looking corporations have teamed up to develop the potential production of biodiesel fuel from renewable products such as sugar cane waste, woodchips and more.

The global BP energy group of the UK and the Martek Biosciences company of the US will work together toward making cost-effective, microbial biodiesel through fermentation.

Philip New, chief executive of BP Biofuels, said: "As an alternative to conventional vegetable oils, we believe sugar-to-diesel technology has the potential to deliver economic, sustainable and scaleable biodiesel supplies.

"In partnering with Martek, we combine the world's leading know-how in microbial lipid production with our expertise in fuels markets and applications, and our more recent experience in biofuels production and commercialisation," he added.

Steve Dubin, chief executive of the Martek Biosciences Corporation, said: "We are pleased to partner with BP's Alternative Energy team, to combine our unique algae-based technologies and intellectual property for the creation of sustainable and affordable technology for microbial biofuel production. BP's global leadership and commitment to alternative energy solutions complements Martek's own commitment to responsible and sustainable products and production." The technology has been demonstrated in Martek's expertise for more than 20 years and the challenge is to adapt this technology to the needs of the biofuels market.

Philip New added: "This technology is also a perfect fit with our other strategic choices for biofuels, all based on sustainable feedstocks and fermentation to produce advanced biofuels. It is part of our approach of integrating sugar cane and lignocellulosic biofuels with advanced technologies to produce products with a wide range of uses." BP has agreed to contribute up to 10 million US dollars to the initial phase of the collaboration. Martek will perform the biotechnology research and development associated with this initial phase; BP will contribute to its integration within the biofuels value chain.

Converting sugar to biodiesel uses advanced biological science to convert sugars derived from biomass into lipids using unique fermentation micro-organisms; the lipids are then converted into fuel molecules through chemical processes.

Biodiesel produced from sustainable feedstocks via the fermentation of sugars will offer the potential to deliver greenhouse-gas emission reductions of up to 80-90 per cent when compared with traditional fossil fuel.

Other advantages of sugar converted to biodiesel over conventional biodiesel made from vegetable oils include:

* Access to a variety of biomass feedstocks such as sugar cane, sugar cane waste (bagasse), energy grass and woodchips that can be produced at scale and in high yield.

* Use of sustainable, non-food, plant biomass as its feedstock.

* Ability to tailor the product for a variety of diesel and jet-fuel needs.

* Reduced exposure to vegetable oil price.

BP is of one of the world's largest energy companies, providing its customers with fuel for transportation, energy for heat and light, retail services and petrochemicals products for everyday items. It is the largest oil and gas producer in the US and one of the largest refiners. BP also has a global network of 22,000 service stations.