BP and Martek Biosciences Corp. have signed a joint development agreement (JDA) to work on the production of microbial oils for biofuel applications, combining a broad technology platform and operational capabilities to further develop the conversion of sugars into biodiesel.
Under the terms of the multi-year agreement, Martek and BP will work together to establish proof of concept for large-scale, cost effective microbial biodiesel production through fermentation.
BP will provide a $10-million infusion for the initial phase while Martek will provide the research and development. JDA will be retained by each respective company, and all intellectual property developed during the JDA will be owned by BP, with an exclusive license to Martek for application and commercialization in nutrition, cosmetic, and pharmaceutical applications. Additionally, each party is entitled to certain commercial payments from technology commercialized in the other party’s field.