Ruth Scotti, (.ppt 2.0 MB)

2,049 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
2,049
On SlideShare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
69
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • Fuels action/impact focus in on three areas 1) Biofuels are the leading short-to-medium term route for reductions of carbon dioxide emissions from transport fuels. 2) We believe energy dependency will remain a primary motivation for pursuing alternative and renewable transport fuels. Biofuels help countries diversify energy supplies and reduce dependency on imported oil. . 3) Air Quality was a difficult challenge but is on the way to being solved in the developed world Technology solution Implemented with legislative support Consumer behaviour played little part
  • We believe the time is right - both market conditions and government priorities validate the important role that biofuels can play in addressing energy security. With high oil prices, biofuels are becoming more viable We have a window of opportunity to shape this emerging market in one of our major business areas. This business will help governments and policymakers to achieve their energy security goals: Biofuels help countries diversify energy supplies and reduce dependency on imported oil. energy security remains the first priority, particularly in the Transport sector . Biofuels also provide a new market for the agricultural sector and rural economies. Policy Options: Tax incentives-useful way at stimulating market activity High cost to Finance Ministries Politically long term unsustainable Next step - obligations in the form of tradable certificates Oppose mandates - lack flexibility & impact on supply security Link policy mechanisms (incentive/obligation) to environmentally responsible solutions
  • Biofuels are the leading short-to-medium term route for reductions of carbon dioxide emissions from transport fuels. ‘ We assume that the quantity of biofuels in the total worldwide gasoline and diesel pool rises steadily, reaching one-third by 2050. Conventional biofuels (biofuels yielding a 20% CO2 unit efficiency benefit) are capped at 5% of the total pool. The balance is assumed to be advanced biofuels (those yielding at least an 80% CO2 unit efficiency benefit).’ SMP p116
  • BP regards the use of conventional biocomponents such as ethanol or FAME produced from intensively farmed crops as only a first step in the potential use of biomass, with limited impact on GHG emissions and relatively limited availability. Ethanol Issues High vapour pressure at low % blends in gasoline Azeotrope formed when biogasoline mixed with conventional gasoline Hydrophilic – phase separation Excluded from multi-product pipelines Segregated supply chain – cannot be mixed with regular gasoline Denaturing requirement prior to storage Refinery addition Severe penalties for manufacturing BOB (i.e. to 60 kPa summer RVP spec.) Significant investment in tankage and logistics Requirement for whole market to turnover Dislocation of market from fungible European gasoline market Excluded from multi-product pipelines Terminal addition Could be supplied to limited ‘market island’ on segregated basis FAME Blending up to 5% into EN590 is effective at responding to biofuel legislation Relatively easy low-cost implementation Blending issues High density Poor cold flow properties Potential for gum/elastomer formation in lines and pumps left standing in RME Storage issues RME is aggressive - cleans everything! No impact on fungibility Indigenous production of RME unlikely to be sufficient Development of other sources of FAME, or other biodiesel components
  • BP is one of the world’s largest blenders of biofuels - approx. 660 million gallons in 2005 (590 ethanol, 70 m biodiesel Significant ethanol blending in the US ETBE blending in Europe (Germany, France) RME blending in Europe (Germany, France, Austria) Introduction/evaluation of new markets, in line with EU Biofuels Directive Netherlands (ETBE, FAME) UK (FAME) Spain Other biofuels projects Continued ethanol penetration in US (RFS) Ethanol introduction in Australia Refinery co-processing (hydrogenation) of tallow (Bulwer, Australia) Jatropha in India
  • BP has already announced establishment of a new biofuels business within R&M and is now announcing a partnership with DuPont to develop advanced biofuels BP will invest in a new biofuels business to commercialise new biofuel products. BP will partner with science company DuPont to develop and market new advanced biofuels to meet the increasing global demand for renewable transportation fuels. The first of the next generation of biofuels to market will be biobutanol – a gasoline biocomponent. Initial production is targeted in the UK where BP & DuPont are collaborating with British Sugar
  • Biobutanol has a number of properties which make it attractive It can easily be blended into existing grades of gasoline and can use the existing fuel supply and distribution infrastructure without major modification It has the potential to be used at higher blend concentrations than ethanol in unmodified vehicles It has an energy content closer to that of gasoline than ethanol – reducing the impact on fuel economy and improving the proposition for the consumer Biobutanol can also enhance the performance of ethanol blends in gasoline and can thus be used together with ethanol as a complementary biocomponent Can be used together with ethanol It can enhance the performance of ethanol blends in gasoline It can be produced from the same feeds as ethanol Long term, we will develop feedstocks and processes to create ‘advantaged’ molecules - so called because they: Have high energy content Can be blended into fuel in higher proportions Can use as feedstock low-cost crops that are non-edible, abundant and not intensively cultivated Use more of the plant, not only the seeds Are made through conversion technologies that release minimal carbon dioxide Other Advanced biofuels will be explored through Biomass gasification
  • Biobutanol has a number of properties which make it attractive It can easily be blended into existing grades of gasoline and can use the existing fuel supply and distribution infrastructure without major modification It has the potential to be used at higher blend concentrations than ethanol in unmodified vehicles It has an energy content closer to that of gasoline than ethanol – reducing the impact on fuel economy and improving the proposition for the consumer Biobutanol can also enhance the performance of ethanol blends in gasoline and can thus be used together with ethanol as a complementary biocomponent
  • BP has already announced establishment of a new biofuels business within R&M and is now announcing a partnership with DuPont to develop advanced biofuels BP will invest in a new biofuels business to commercialise new biofuel products. BP will partner with science company DuPont to develop and market new advanced biofuels to meet the increasing global demand for renewable transportation fuels. The first of the next generation of biofuels to market will be biobutanol – a gasoline biocomponent. Initial production is targeted in the UK during 2007 where BP & DuPont are collaborating with British Sugar to convert the UK’s first ethanol fermentation facility to produce biobutanol Plant capacity is expected to be 30,000 tonnes/yr using sugar beet. Initial use of existing technology to speed market introduction in UK. Long term, we will develop feedstocks and processes to create ‘advantaged’ molecules - so called because they: Have high energy content Can be blended into fuel in higher proportions Can use as feedstock low-cost crops that are non-edible, abundant and not intensively cultivated Use more of the plant, not only the seeds Are made through conversion technologies that release minimal carbon dioxide
  • BP has already announced establishment of a new biofuels business within R&M and is now announcing a partnership with DuPont to develop advanced biofuels BP will invest in a new biofuels business to commercialise new biofuel products. BP will partner with science company DuPont to develop and market new advanced biofuels to meet the increasing global demand for renewable transportation fuels. The first of the next generation of biofuels to market will be biobutanol – a gasoline biocomponent. Initial production is targeted in the UK during 2007 where BP & DuPont are collaborating with British Sugar to convert the UK’s first ethanol fermentation facility to produce biobutanol Plant capacity is expected to be 30,000 tonnes/yr using sugar beet. Initial use of existing technology to speed market introduction in UK. Long term, we will develop feedstocks and processes to create ‘advantaged’ molecules - so called because they: Have high energy content Can be blended into fuel in higher proportions Can use as feedstock low-cost crops that are non-edible, abundant and not intensively cultivated Use more of the plant, not only the seeds Are made through conversion technologies that release minimal carbon dioxide
  • Biofuels reduce the overall volume of carbon dioxide entering the atmosphere by absorbing carbon dioxide in feedstock plants as they grow while emitting roughly the same as conventional fuels when the resulting biofuels are burned Conventional biofuels are usually blended into fuel in small proportions such as 5 - 10%, providing useful, but limited, reductions in net greenhouse gas emissions
  • Continuing with the fuels of the past is not sustainable because it will not meet the long term needs of our global customer base Fuels action/impact focus in on three areas 1) Biofuels are the leading short-to-medium term route for providing sustainable options for transport fuels. 2) We believe energy dependency will remain a primary motivation for pursuing alternative and renewable transport fuels. Biofuels help countries diversify energy supplies and reduce dependency on imported oil. . 3) Air Quality is a continuing challenge and non-attainment areas remain in many locations, but this is well on the way to being solved in the US and the rest of the developed world Technology solution – more stringent fuel and vehicle requirements have been implemented Implemented with legislative support Consumer behaviour played little part
  • Ruth Scotti, (.ppt 2.0 MB)

    1. 1. Presentation title second line if required Introducing BP Bio fuels a growing alternative Ruth Scotti US Fuels Policy Advisor BP Governor’s Ethanol Coalition Meeting 2 nd of October 2006
    2. 2. <ul><li>Drivers for Change </li></ul><ul><li>Future Fuels Pathway </li></ul><ul><li>Our Current Options and Actions </li></ul><ul><li>Our New Business and Initiatives </li></ul><ul><li>Future Outlook for Biofuels </li></ul>Biofuels Talk Overview
    3. 3. BP Biofuels a growing alternative Drivers for Change <ul><li>Key drivers in moving towards sustainable mobility solutions </li></ul><ul><ul><li>Security of supply & energy diversification </li></ul></ul><ul><ul><li>Climate change issues </li></ul></ul><ul><ul><li>Biofuels address both these issues. </li></ul></ul>
    4. 4. Why Biofuels? The only supply-side option which can respond to the key challenges of energy security & climate change Expected end state: 1/3 of fuels from bio-sources at some point in future Future Options for the Transport Sector <ul><li>Bubble size indicates materiality </li></ul><ul><li>of each option in 2030 </li></ul><ul><li>CTL = coal-to-liquids </li></ul><ul><li>GTL = gas-to-liquids </li></ul><ul><li>CNG = compressed natural gas </li></ul><ul><li>H 2 = hydrogen </li></ul>Why Biofuels?
    5. 5. BP Biofuels a growing alternative Security of Supply and Energy Diversification <ul><li>Biofuels will help governments achieve their energy security goals and reduce dependence on imported oil </li></ul><ul><li>Biofuels have the added benefit of helping the agriculture sector </li></ul>Imported Energy Dependency Profile 53% 64% 81% 89% 47% 72% 66% 84% 2004 2020 Transport N America EU China India
    6. 6. Agricultural and Rural Impact <ul><li>Extremely large quantity of biomass needed to meet transport energy needs </li></ul><ul><li>Current Availability of Corn </li></ul><ul><li>Need for Dedicated energy crops </li></ul><ul><li>Eventual Change in farming </li></ul><ul><li>Opportunities to utilize low value land and waste </li></ul>Agricultural and Rural Impact BP Biofuels a growing alternative
    7. 7. BP Biofuels a growing alternative Greenhouse Gas Emissions Reduction <ul><li>Transport energy demand is projected to double by 2050 </li></ul><ul><li>Transport comprises 21% of CO2 emissions </li></ul><ul><li>A variety of technologies can reduce GHG emissions in the future </li></ul><ul><ul><li>Vehicle efficiency </li></ul></ul><ul><ul><li>Biofuels and other renewable fuels </li></ul></ul><ul><ul><li>Demand reduction </li></ul></ul>Combined Technology Case
    8. 8. <ul><li>Drivers for Change </li></ul><ul><li>Future Fuels Pathway </li></ul><ul><li>Our Current Options and Actions </li></ul><ul><li>Our New Business and Initiatives </li></ul><ul><li>Future Outlook for Biofuels </li></ul>Biofuels Talk Overview
    9. 9. BP Biofuels a growing alternative BP strategy: The Future Fuels Pathway Biofuels is a critical and timely step in the future fuels pathway and will help deliver goals towards security of supply and GHG emission reduction
    10. 10. <ul><li>Drivers for Change </li></ul><ul><li>Future Fuels Pathway </li></ul><ul><li>Our Current Options and Actions </li></ul><ul><li>Our New Business and Initiatives </li></ul><ul><li>Future Outlook for Biofuels </li></ul>Biofuels Talk Overview
    11. 11. BP Biofuels a growing alternative <ul><li>Conventional biofuels are a positive first step in use of biomass </li></ul><ul><li>GHG reductions modest, not all biofuels are equal </li></ul><ul><li>Benefit rural economy </li></ul><ul><li>Limitations : </li></ul><ul><ul><li>Competing land use issues – food vs power generation </li></ul></ul><ul><ul><li>Not ideal fuel molecules: </li></ul></ul><ul><ul><ul><li>handling/quality issues; </li></ul></ul></ul><ul><ul><ul><li>infrastructural compatibility issues </li></ul></ul></ul>sugar & starch crops Ethanol for gasoline Esters for Diesel (FAME) oil crops “ Conventional” Bio-components
    12. 12. <ul><li>ANZ </li></ul><ul><li>Supplying Ethanol to retail sites in QLD </li></ul><ul><li>Renewable diesel via tallow </li></ul>BP Biofuels a growing alternative BP’s Biofuels Activity <ul><li>Europe </li></ul><ul><li>First major to introduce 5% FAME blend in Germany </li></ul><ul><li>Across Europe ETBE replaces MTBE </li></ul><ul><li>EBI Institute University TBD </li></ul><ul><li>Targetneutral UK launch August 2006. Germany introduction during 2007 </li></ul>India $9.4M project of Jatropha “oil bearing crops” for diesel fuel <ul><li>US </li></ul><ul><li>Largest user of Ethanol in gasoline </li></ul><ul><li>20 new markets added in 2005 </li></ul><ul><li>Biodiesel to small number of B2B, evaluating more widespread customer offer </li></ul><ul><li>EBI Institute University TBD </li></ul><ul><li>E85 introduction in select markets </li></ul><ul><li>Targetneutral introduction in CA during 2007 </li></ul><ul><li>Asia </li></ul><ul><li>Round table sustainable Palm Oil </li></ul>
    13. 13. <ul><li>Product facts </li></ul><ul><li>Ethanol (E100) emits approx 20% less GHGs than gasoline . Consequently, E10 delivers approx 2%, and E85 delivers approx 17% </li></ul><ul><li>Economics and policy </li></ul><ul><li>Current global ethanol consumption is 8bn gallons – less than 2% of total consumption </li></ul><ul><li>The US government has set a mandate to increase ethanol consumption from 4bn gallons in 2005 to 7.5bn gallons by 2012 </li></ul><ul><li>A federal tax credit of $0.51/gallon is offered for ethanol (E100) </li></ul><ul><li>Increased demand for ethanol (mostly due to phasing out of MTBE) may further increase ethanol prices in the short term, particularly on the East Coast </li></ul><ul><li>New ethanol capacity coming on-stream may lead to a return to price parity </li></ul><ul><li>BP and Ethanol </li></ul><ul><li>BP is one of the largest purchasers of ethanol in the US (over 500m gallons in 2005) </li></ul><ul><li>E85 Pilot Planning Underway </li></ul>Today: Ethanol
    14. 14. <ul><li>E10 is mandated in large cities like NY, Chicago, LA, the state of Minnesota, and several East Coast states </li></ul><ul><li>BP supplies E10 to approx 7,000 BP-branded gas stations throughout the US </li></ul><ul><li>Opportunity to accelerate roll-out of renewable fuel to a large portion of the vehicle pool </li></ul><ul><li>No need for investment in gas station or vehicle equipment (only investment needed is blending capacity at terminal level) </li></ul><ul><li>Delivers approximately 2% GHG reduction vs regular gasoline </li></ul>Today: E10
    15. 15. <ul><li>BP Views E85 as a good first step down the road to biofuels becoming more material part of the fuel supply </li></ul><ul><li>Short-Term Constraints </li></ul><ul><ul><li>Limited availability/ recent high price of ethanol </li></ul></ul><ul><ul><li>Preferred to direct ethanol into mandated markets (E10) </li></ul></ul><ul><li>Our Policies on E85 </li></ul><ul><ul><li>We allow our independent marketers to place it under the BP branded canopy as an unbranded product provided it meets all requirements and standards for safe dispensing </li></ul></ul><ul><ul><li>Branded Pilot in Planning Process </li></ul></ul>Today: E85
    16. 16. <ul><li>Drivers for Change </li></ul><ul><li>Future Fuels Pathway </li></ul><ul><li>Our Current Options and Actions </li></ul><ul><li>Our New Business and Initiatives </li></ul><ul><li>Future Outlook for Biofuels </li></ul>Biofuels Talk Overview
    17. 17. BP Biofuels a growing alternative BP’s New Biofuels Business <ul><li>Formed a new Biofuels business in June </li></ul><ul><li>Announced plans to invest $500 M in new Energy Biosciences Institute to provide a pipeline of biofuels technology for the business </li></ul><ul><li>Will partner with science company DuPont to develop advanced biofuels-the first introduction is bio-butanol. </li></ul><ul><li>BP & DuPont collaborating with British Sugar on introduction of bio-butanol into UK </li></ul><ul><li>Launched targetneutral in the UK as a consumer education, non-profit programme that gives motorists the chance to ‘neutralise’ the CO 2 emissions from their driving </li></ul>
    18. 18. BP Biofuels a growing alternative Strategic Focus: Next Generation Biofuels <ul><li>Focus on commercializing technologies from feedstock through to fuel </li></ul><ul><li>Advanced biofuels respond to all drivers - deliver on GHG, security of supply & support agriculture sector </li></ul><ul><li>Next generations biofuels will benefit from enhancing the performance of current biofuels </li></ul><ul><li>Able to compete with petrochemical based fuels on an unsubsidized basis </li></ul><ul><li>Second generation biofuels are expected to be even less carbon intensive because they will be manufactured using non-food crops (lignocellulosic) and with a different processing technology </li></ul>
    19. 19. A New Option <ul><li>Biobutanol has a number of attractive properties: </li></ul><ul><ul><li>Made from all the same feedstocks as ethanol (Corn or future – switchgrass) </li></ul></ul><ul><ul><li>Easily blended into gasoline </li></ul></ul><ul><ul><li>Can use existing fuel infrastructure (pumps and tanks) without major modification </li></ul></ul><ul><ul><li>Potential to be used at higher blend concentrations in unmodified vehicles </li></ul></ul><ul><ul><li>An energy content closer to that of gasoline than ethanol – reducing the impact on fuel economy for the consumer </li></ul></ul><ul><li>Biobutanol is complementary to ethanol: </li></ul><ul><ul><li>Can be used together with ethanol </li></ul></ul><ul><ul><li>It can enhance the performance of ethanol blends in gasoline </li></ul></ul>
    20. 20. <ul><li>Drivers for Change </li></ul><ul><li>Future Fuels Pathway </li></ul><ul><li>Our Current Options and Actions </li></ul><ul><li>Our New Business and Initiatives </li></ul><ul><li>Future Outlook for Biofuels </li></ul>Biofuels Talk Overview
    21. 21. BP Biofuels a growing alternative Conversion Capacity Technology Development Low Cost Production Customer Preferences <ul><li>Supply increasing rapidly; but government policy changes could lift demand further </li></ul><ul><li>Reliable and low cost feedstock supplies will be critical to low cost production </li></ul><ul><li>Feedstock supply may limit market growth until new technologies become available </li></ul><ul><li>Delivering fuel performance characteristics that are valued by consumers </li></ul><ul><li>The development of responsible legislation </li></ul>Legislative Framework Over time, the direction of the biofuels industry will ultimately be shaped by many factors
    22. 22. BP Biofuels a growing alternative Regulation: Target ends, not means. Allow markets to pick winners. Encourage sustainable practice. <ul><li>Maintain flexibility – avoid fuel-specific targets </li></ul><ul><li>Regulatory mechanisms to apply equally across a market and market participants </li></ul><ul><li>Incentive or obligations based on emission reduction or energy content rather than volume basis </li></ul><ul><li>Source from sustainable and responsible production routes </li></ul><ul><li>Maintain fungibility of the slate </li></ul><ul><li>Avoid fixed per-gallon mandates </li></ul>
    23. 23. <ul><li>Currently formulating Sourcing Guidelines to define parameters for social and environmental responsibility </li></ul><ul><li>GHG Certification </li></ul><ul><ul><li>Not all biofuels equal on GHG basis </li></ul></ul><ul><ul><li>Methodology to quantify supply chains in process of development </li></ul></ul><ul><li>Feedstock Sourcing </li></ul><ul><ul><li>Environmental Issues </li></ul></ul><ul><ul><ul><li>Deforestation/Land use issues </li></ul></ul></ul><ul><ul><ul><li>RSPO an example of environmental sustainability standard </li></ul></ul></ul><ul><ul><li>Social and Ethical </li></ul></ul><ul><ul><ul><li>Working conditions in emerging markets </li></ul></ul></ul><ul><ul><ul><li>Moving indigenous populations </li></ul></ul></ul><ul><ul><ul><li>Child labor </li></ul></ul></ul>Current Issue: Sustainability Considerations
    24. 24. <ul><ul><li>Scarcity of feedstock </li></ul></ul><ul><ul><li>Poor fuel quality of bio-molecules </li></ul></ul><ul><ul><li>High cost of biofuels compared to gasoline </li></ul></ul><ul><ul><li>Feedstock is key driver of biofuels production cost (60-80% of total cost for ethanol and biodiesel) </li></ul></ul><ul><ul><li>Access to low cost feedstock with therefore be a key source of advantage – and supplies are limited </li></ul></ul><ul><ul><li>US has enough corn to supply 7.5bn gallons RFS requirement – but not enough for overall 10% blend </li></ul></ul><ul><ul><li>Lower energy content than gasoline (poor mileage) </li></ul></ul><ul><ul><li>Problematic when mixed with water (e.g., in pipelines) </li></ul></ul><ul><ul><li>Can only blend up to c. 10% with gasoline without engine modification </li></ul></ul><ul><ul><li>Reid Vapor Pressure in low level blends is high </li></ul></ul><ul><ul><li>At $40/bbl oil, gasoline value is $1.08/gall; ethanol production cost is $1.20/gall (US) or $1.70/gall (EU) </li></ul></ul><ul><ul><li>Biofuels only rendered profitable by government policy (outside Brazil) e.g., $0.51 incentive (US); $1.40/gall (UK) </li></ul></ul><ul><li>Challenge </li></ul><ul><li>Description </li></ul>Key Challenges for Biofuels 1 2 3
    25. 25. BP Biofuels a growing alternative Biofuels – Summary <ul><li>Climate change and energy supply diversification will continue to underpin increased use of biofuels </li></ul><ul><li>Conventional biofuels are a positive first step in use of biomass </li></ul><ul><ul><li>GHG reductions modest, not all biofuels are equal </li></ul></ul><ul><ul><li>Land use and competition for food crops are serious issues </li></ul></ul><ul><li>Standards are needed for carbon certification of biofuels and to ensure sustainable biomass production </li></ul><ul><li>BP is working in partnerships to develop processes for production of second generation biofuels </li></ul><ul><li>If Biofuels are to make a significant impact of the two key drivers of energy supply security and climate change, then in the longer term, we will need: </li></ul><ul><ul><li>Better feedstocks </li></ul></ul><ul><ul><li>Better processes </li></ul></ul><ul><ul><li>Better fuel molecules </li></ul></ul>
    26. 26. Presentation title second line if required Introducing BP Bio fuels a growing alternative Ruth Scotti US Fuels Policy Advisor BP National Governor’s Ethanol Coalition 2 nd of October 2006
    27. 27. BP Biofuels a growing alternative Backup slides
    28. 28. BP Biofuels a growing alternative Biofuels Overview - the carbon cycle C O2 C O2 Biomass growth Processing to produce biofuel Biofuel in cellulose/sugar/starch in fuel molecules in fuel molecules Use in vehicle one carbon atom as CO2 removed from atmosphere during photosynthesis Same carbon returned to Atmosphere as CO2 Carbon in crop or crop residue External energy and associated GHG emissions for farming (eg from fertiliser use) External energy and emissions for fuel production process External energy for distribution & transportation + + = WTW GHG emission result for biomass pathways. Contribution from above closed cycle is zero -C- -C- -C- -C- Fossil Energy Inputs
    29. 29. BP Biofuels a growing alternative WTW GHG benefit vs cost % GHG Benefit vs. Gasoline/diesel baselines Cost for Substitution € /100km H2 from Natural Gas/fuel cell H2 -combustion engine FT Diesel Ex wood GTL Diesel 20% 0.5 2.5 7.0 100% 50% 10% 30% 40% 60% 70% 80% 90% 1.0 3.5 3.0 2.0 1.5 4.0 4.5 Conventional Biofuels Advanced Biofuels Renewable & low carbon Hydrogen High Benefit, High Cost Lower Benefit, Lower Cost High Benefit, Moderate Cost Reference-WTW Analysis of Future Automotive Fuels & Powertrains in the European Context-Version 2a,December 2005. Concawe/European Council for Automotive R&D /European Commission Joint Research Centre Ethanol sugar beet 6.5 6.0 7.5 5.5 5.0 Ethanol wheat LC Ethanol Ex wood Biodiesel RME H2-Renewable fuel cell 8.0 CNG
    30. 30. Demand of transport
    31. 31. BP Biofuels a growing alternative BP Biofuels Low Carbon Road Transport Strategy Low Carbon Road Transport Strategy Reduce carbon intensity of fuel itself Use less fuel or use it more efficiently Solution – Biofuels are the best short to medium term BP is progressing future fuel strategy Solution - consumer education about driving behaviour & choices targetneutral is BP’s response 2 challenges to reduce greenhouse impact of our fuels
    32. 32. BP Biofuels a growing alternative What is targetneutral? <ul><li>targetneutral is a voluntary, non-profit programme that gives motorists the chance to ‘neutralise’ the CO 2 emissions from their driving </li></ul><ul><li>Reduce, Replace, Neutralise </li></ul><ul><ul><li>Reduce means changing attitudes and behaviours to reduce fuel usage. </li></ul></ul><ul><ul><li>Replace means buying a product that is more energy efficient. </li></ul></ul><ul><ul><li>Neutralise means becoming CO2 neutral for those emissions you cannot prevent now. </li></ul></ul><ul><li>Managed by biofuels business </li></ul>
    33. 33. How does it work? <ul><li>Consumer visits www.targetneutral.com calculates their annual CO 2 emissions (miles & mpg) & pays to purchase equivalent emission reductions to ‘neutralise’ CO 2 impact </li></ul><ul><li>Average payment is approx £20pp pa </li></ul><ul><li>100% of consumer funds (Excl VAT & transaction fees) goes to emission reduction projects in developing countries </li></ul><ul><li>BP will make a contribution when members refuel at BP sites (up to £0.10 per tank regular & £0.20 Ultimate) </li></ul><ul><li>Members & retail value tracked via Nectar cards </li></ul><ul><li>Quarterly email communication to members </li></ul><ul><li>BP’s UK fuel tankers are CO 2 neutral </li></ul>BP Biofuels a growing alternative
    34. 34. Where does the money go? <ul><li>Portfolio of developing country projects to reduce CO 2 emissions </li></ul><ul><li>Renewable energy & biomass projects preferred by consumers </li></ul><ul><li>Sustainability & community benefits </li></ul><ul><li>Independently verified – real & quantifiable </li></ul><ul><li>Credits retired upon purchase </li></ul><ul><li>To help counter cynicism, an independent panel of leading environmentalists, academics and opinion formers, chaired by Jonathon Porritt, has been establish to oversee & monitor the scheme </li></ul>BP Biofuels a growing alternative
    35. 35. <ul><li>DuPont and BP are currently in the process of carrying out detailed calculations of biobutanol’s GHG WtW emission performance. Initial indications are that, on the same feedstock basis, biobutanol can deliver emission reductions that are similar to ethanol on the same feedstock basis. </li></ul>g CO2equv. /100 km Source: 2005 JEC WTW Report Butanol Well to Wheels: Similar to Ethanol 32% 34% 87%
    36. 36. Biobutanol: Vapor Pressure of Alcohol-Gasoline Blends Butanol has a vapour pressure synergy with ethanol. Butanol’s DVPE in a co-blend with ethanol is negative. In this example ~ minus 35kPa. Butanol: Impact on Vapor Pressure
    37. 37. Biobutanol: Alcohol-Water Interactions Butanol does not phase-separate in the presence of water, unlike ethanol Butanol: Water Solubility

    ×