BP to invest $500m in biofuel research

Energy giant BP has announced it will spend US$500m over the next ten years investigating the potential of biofuels, setting up a dedicated bioscience energy research lab.

The lab will be attached to a university in the UK or USA and will look at new kinds of biofuel as well as improving the efficiency of existing ones.

To meet the growing demand for biofuels BP also plans to set up businesses to put its discoveries into production.

Sam Bond