Valero Partners with Algae-Based Fuel Company Algenol
Valero Energy Corporation, one of the largest US oil refiners, took another step into the alternative fuel space by forming a joint venture with algae-to-fuel company Algenol Biofuels Inc.
The companies did not disclose how much Valero will invest in the algae technology. They said they will explore combining Algenol’s Direct to Ethanol® technology with Valero’s infrastructure for production and distribution.
Valero made a strong move into ethanol production last year, purchasing 11 US ethanol plants at bargain prices, following the bankruptcy of ethanol company VeraSun. The acquisitions gave Valero corn ethanol production capacity of 1.1 billion gallons per year. The refiner is thus in a good position to meet blending requirements for its 2.8 million-barrels-per-day refinery output.
The acquisitions also gave Valero a stake in cellulosic ethanol company Qteros.
