Supermajor BP will build a “world scale” biofuels plant in the United Kingdom with mass-produced food groups Associated British Foods and Dupont, it was announced Tuesday.

A joint venture will build the plant and operate the business: BP and ABF will each hold 45 percent and DuPont 10 percent.

The aim of the venture is bioethanol from wheat, for which £200 million will be spent. BP’s chemicals site at Saltend, Hull was chosen for plant with 420 million litres (or 330,000 tonnes) of bioethanol per year, starting late in 2009.

At a "carbon capture" conference in Oslo this week, International Energy Agency director Claude Mandil, said the costs of making biofuels have recently come down "drastically".