LONDON, Aug. 6 (UPI) -- BP and Verenium Corp. (NASDAQ:VRNM) announced cooperation on ethanol in the United States.

The pair announced they will be partners in developing and commercializing cellulosic ethanol in part by building a series of low-cost, environmentally sound cellulosic ethanol production facilities in the United States and abroad.

As part of the new deal, Massachusetts-based Verenium will receive $90 million in funding from BP over the next 18 months to buy the rights to ethanol technologies.

BP officials said in a statement they would like to focus ethanol development around crops like sugar cane, miscanthus and energy cane in the United States' market, following their successes in Brazil.

Verenium will receive $45 million during the next year for BP's access of its cellulosic ethanol technology platform, production facilities and employee scientific knowledge and expertise.