BP Cancels U.S. Ethanol Plant

BP plc has canceled plans to build a commercial cellulosic ethanol plant in Highlands County, Fla., saying it will divert the "considerable" investment involved into unspecified but "more attractive" projects.

The energy company unveiled plans for the facility in 2008. The plant was to produce 36 million gallons of cellulosic ethanol per year.

BP says it will redirect its biofuels program in the U.S. to research and licensing its technologies. The company describes itself as a major investor in commercial biofuels production outside the U.S.