UK biofuels company Green Biologics (GBL) has today merged with US counterpart Butylfuel, in a deal designed to accelerate its work on developing advanced fuels from waste and agricultural by-products.

The two companies will continue under the Green Biologics name and work on building the market for its biobutanol fuel, which the firm believes can directly replace petrol and aviation fuel, as well as be blended with diesel.

Its derivatives are also used in the production of paints, coatings, adhesives and inks, a global market of about $85bn, according to Green Biologics.

"This merger creates a truly global leader in biobutanol and represents a transformational deal for both companies," said Sean Sutcliffe, chief executive of the combined group, in a statement.

"We are combining GBL's acknowledged technology leadership and commercialisation expertise in China, India and Brazil with the scale-up, operational process experience and North American business-building capabilities of Butylfuel."

The company has three projects under way in China where it is working on producing biofuel from molasses and corn by-product feedstocks, while it is focusing on producing fuels from cane and bagasse as well as molasses in India and Brazil. Meanwhile, the company's North American activities are expected to look at developing biofuels from both starch-based and cellulosic feedstocks.

In other merger news, offsetting company Carbon Retirement has announced a partnership with campaigners Sandbag and financiers Palmetto Climate intended to to consolidate their activities in the carbon offset market.

Palmetto will take on Carbon Retirement and Sandbag's methods of purchasing and deleting EU Allowances (EUAs). This will allow the Sandbag group, established by Baroness Bryony Worthington, to focus on its campaign for reform of the EU emissions trading scheme.

Amit Oza, European chief executive of Palmetto Climate, said the company will look to extend the service to more commercial and public sector clients.