Wragge & Co LLP Corporate Group has advised BP on a $400 million biofuels investment deal with Associated British Foods and DuPont.

The investment includes the construction of a new bioethanol plant built on BP's existing chemicals site at Saltend, Hull. BP and ABF will each own 45 per cent of this facility, with DuPont holding 10 per cent. Due to be commissioned in late 2009, it will have an annual production capacity of 420 million litres from wheat feedstock. Although initial production would be bioethanol, the partners will look at the feasibility of converting it to biobutanol once the required technology is available.

The site will also host a high technology demonstration plant to develop the next generation of biofuels. Funded and owned equally by BP and DuPont, the plant will produce 5,000 gallons of biobutanol a year from a variety of feedstocks.

Corporate partner Richard Haywood and corporate associate Gareth Baker led the Wragge & Co team assisted by associate Emmanuelle Strauven. Charlotte White provided specialist employment law advice. Julian Pallett and Yasmin Ali advised on financing issues. Zoë Hooper-Smith advised on tax matters. Michael Luckman and Sara McNeill advised on IP branding issues. Richard Green and Paul Green advised on construction aspects of the transaction. The team worked with Beng Kwang Lim and Jens Bertelsen from BP's M&A legal team.

Herbert Smith acted for Associated British Foods while Eversheds acted for DuPont.

Wragge & Co is one of BP's core law firms. Last year it completed its first renewables deal for the energy giant, advising on the strategic alliance between BP Alternative Energy and Clipper Windpower.

Wragge & Co's 70-lawyer Corporate Group is supported by specialists in banking, pensions, employment, real estate and tax, ensuring full-service advice and support for every deal. A strong market for M&A and disposal work has seen it advise major corporates and institutional clients on a wide range of deals. These include the £336 million sale of Rosemound, a trio of cross-border deals worth $1.03 billion for Parkridge, and transactions for Spectris plc, Floors-2-Go plc and UBC Media plc.

The firm's cross-firm energy practice comprises a single team of projects, regulatory, construction, corporate, real estate and finance experts. This approach means clients including generators, distributors, suppliers, traders, customer bodies, trade associations and customers receive practical, commercial solutions from lawyers dedicated to the energy sector. Highlights include advising E.ON UK on its deal to create one of the world's largest combined heat and power stations on the Isle of Grain in Kent.

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For further information about this press release, contact Kathryn Hobbs on +44 (0)121 213 2397, Alexa Highfield on +44 (0)121 213 2396 or Amie Ryalls on +44 (0)121 213 2360

This press release may contain information of general interest about current legal issues, but does not give legal advice.