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BP HAS scrapped plans to build a cellulosic ethanol plant in Florida, saying it no longer intends to produce any biofuels on a commercial scale within the US.

The company first set out its plans for the commercial-scale facility more than four years ago, with the aim of producing ethanol from tough grasses and so-called ‘energy crops’ designed not to compete for land with food crops. When running at full capacity, the US$300m plant would have been capable of producing 163m l/y of the biofuel.

Now, however, BP says it is “ending its pursuit of commercial-scale cellulosic ethanol production in the US.” Instead, it intends to concentrate its efforts on its two existing R&D facilities in the country, and on licensing its existing biofuels technology.

According to Geoff Morrell, BP vice president of communications, the company believes that it would be in its best interests “to redeploy the considerable capital required to build this facility into other more attractive projects.”

BP’s decision follows a similar move by Shell’s own biofuels division earlier this year, which scrapped plans for a commercial-scale plant in Canada designed to produce ethanol from straw and plant waste.

Both plans fell through in the wake of the US government’s decision to cut back on its support for cellulosic ethanol production. It had previously mandated that refineries process 1.9bn l of the biofuel in 2012, but slashed this to just 33m l when manufacturers struggled to meet with the demand.