DuPont and BP building biobutanol facility in U.K.

DuPont (NYSE:DD) and BP have announced they will invest $58 million in biofuel production assets at two facilities in the U.K.

The two plan to construct a biobutanol demonstration facility, what the companies call the first of its kind in the world.

In addition, DuPont, BP and British Sugar say they will construct a 420 million liter ethanol facility that will help meet the United Kingdom's 2010 Renewable Fuels Obligation.

Both facilities will be located at BP's existing operations at Saltend, Hull, approximately 360 kilometers north of London.

DuPont and BP plan to begin to deliver "market development" (i.e. limited) quantities of biobutanol to the U.K. by the end of the year to carry out testing on the manufacturing infrastructure and further advance the vehicle testing on this next-generation biofuel.

"Over the last year, we have accelerated the commercial development of biobutanol. The demonstration facility, which is intended to begin operating in early 2009, will develop the processing parameters and further advance the commercial deployment of our new technology," said DuPont Biofuels VP and General Manager John Ranieri.

The biobutanol technology research and demonstration facility will be the first designed to develop a range of advanced biofuels, including biobutanol, from feedstocks such as wheat, corn, barley and rye.

Biobutanol is an advanced biofuel that performs more like unleaded gasoline than traditional biofuels. Test results show it has an energy density of around 26 mega-joules per liter (MJ/l), compared to 21-22 MJ/l for bioethanol and 32-33 MJ/l for gasoline.

In addition, biobutanol can be blended in higher concentrations without the need to modify vehicles. Biobutanol does not phase separate in water, allowing it be transported using existing fuel pipeline infrastructure.

DuPont and BP first announced they were embarking on a biobutanol initiative back in June, 2006.

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