The alliance will research and try to commercialize conversion of biomass from crops, wood or prairie grass into transportation fuels, the companies said today in a statement. Annual research investment will be at least $5 million ``for many years,'' said Lou Burke, manager of biofuels at Houston- based ConocoPhillips.
Biofuels, including ethanol made from corn starch and biodiesel made from soy beans, are drawing increased interest as energy sources after demand growth and concern over the adequacy of supplies pushed oil prices to record highs.
``ConocoPhillips believes that the development of next- generation biofuels is a critical step in the diversification of our nation's energy sources,'' Chief Executive Officer Jim Mulva said in the statement.
Decatur, Illinois-based Archer Daniels will focus on making the biocrude, while ConocoPhillips will research ways to refine it, Burke said.
Animal-Fat Fuel
ConocoPhillips and Tyson Foods Inc., the world's biggest meat producer, said in April they plan to jointly develop diesel fuel derived from animal fat. The same month, ConocoPhillips announced it will establish an eight-year, $22.5 million biofuels-research program at Iowa State University.
ConocoPhillips rose 31 cents to $87.61 as of 11:49 a.m. in New York Stock Exchange composite trading. Archer Daniels climbed 34 cents, or 1 percent, to $33.70.
Irving, Texas-based Exxon Mobil Corp. is the largest U.S. oil company, followed by Chevron Corp., based in San Ramon, California.
