BPs Perspective on Future Fuels

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BPs Perspective on Future Fuels
Wolfgang Dörmer, GFT, Bochum
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Agenda

• What have been achieved in the past?
• Why again is bio an issue for fuels?
• Bio target of politics and todays fuel standards
  are not aligned
• BPs biofuels developments
• Summary

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Many challenges were yet solved in the past

• In the past much effort on fossil fuels quality
  was made
• to reduce emissions from both gasoline and
  diesel vehicles.
• to allow introduction of improved vehicles
  technology with lower emissions and exhaust
  after treatment systems.
• to offer advantages for customers in many
  cases performance, fuel economy etc.).

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Improved fuels quality result in lower emissions
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Drivers for change towards biofuels

• Key drivers in moving towards sustainable
  mobility solutions
• Climate change issues
• Security of supply
  Energy diversification
• Biofuels address both of these issues

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Absorption of CO2 by Plants results intobetter
GHG-Balance of fossil Fuels
Both fossil and biofuels produce Carbon Dioxide
(CO2) emissions. But plants, from which biofuels
are often produced, have absorbed CO2 from
environment for growing. So use of biofuels can
result in significant CO2 reductions.
Water (vapour)
Nitrous oxide
etc.
Bio Fuels
Ozone
Principle of a closed CO2 loop
FCKW
CO2
PhotosynthesisCO2-Absorption
Methan
GHGs from other sources
Biomass
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How can biomass be used to manufacture renewable
Fuels?
Energy from seed engines chemicals/fertiliser
A g r i c u l t u r e
sugar beets/wheat
rape
Oil mills / Raffination
rape-oil (pure)
Production process(distillation/dehydration)
processenergy
rape-oil (refined)
or
Esterification
Etherification
Hydro carbons
ETBE
FAME (RME)
Ethanol
diesel
Use in crude refinery (Co-processing) or in
separate process
HVO
Otto engine
Diesel engine
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Politics push Biofuels Implementation (Example
Germany)
8.00
7.75
7.50
7.25
Combined quota)
7.00
6.75
Discussion on increase up to 17 EC from 2020 on
!!
6.25
4.8 FAME by volume
4.4
4.4
4.4
4.4
4.4
4.4
4.4
4.4
4.4
Energy content EC
Diesel-quota
3.6
3.6
3.6
3.6
3.6
3.6
5.6 EtOH by volume
2.8
Topping of a specific single quota can not be
used to complete other failed quota
2.0
1.2
Gasoline-quota
Year
In 2007 und 2008 single quotas for biofuels are
mandatory for blending into Gasoline and Diesel
fuels. Until 2009 a combined quota regulates the
total content of biofuels.
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Todays EN fuel standards do not allow to fulfill
bio quota from 2009 on (example Germany)
Required quota by Biofuel law
Non compliance causes tax penalties
Values by volume are higher
Enhancement of biofuels can result in higher CO2
savings. To use this advantage adjustment of
todays fuel standards to allow higher bio blend
rates is mandatory.BP is supporting both higher
blend rates to achieve higher CO2 savings and
excellent fuel quality to satisfy customers.
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Biofuels future potential world wide
The International Energy Agency (IEA) estimates
the global potential of biofuels up to 30 of
the total demand of transport fuels in 2050
source IEA, BP
According IEA estimates 30 biofuels possible in
2050
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On the way to 2nd generation biofuels better
molecules for gasoline

• Biobutanol for gasoline
• Development of a new fermentation technology for
  the production of biobutanol from sugar together
  with our partner DuPont
• Biobutanol

• allows higher concentrations compared to ethanol
  without the necessity for vehicle adjustments.
• has much lower fuel consuption increase than
  gasoline mixtures with ethanol.
• Biobutanol used as cosolvent with ethanol
  provides positive effects on vapor pressure and
  better decomposition behavior in presence of water

Biobutanol is a good alternative to Ethanol
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On the way to 2nd generation biofuels better
molecules for diesel

• Separate Hydro treating and Isomerization of
  vegetable oils
• Conversion to branched hydrocarbons in new units
• Examples Green Diesel (UOP), NexBTL (Neste)

• Co-Processing of vegetable oils in refineries to
  diesel fuel
• Utilization of existing hydro treating units,
  feasibility demonstrated
• Conversion to straight chain hydrocarbons in
  refinery unit

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BP Activities Better Feed Stocks

• Joint Venture with D1 Crops to develop Jatropha
  plantations (non food crop)
• One million hectares of Jatropha to be planted
  over the next four years, with 300,000 hectares
  per year thereafter.
• Plantation will generate 2.5 billion liters of
  Jatropha oil over the next four years.
• Crops to be planted in South East Asia, Southern
  Africa, Central America, South America and India.
• Also BP is investigating the feasibility of using
  algae oil (using our Energy Bioscience Institute)
  as a diesel feedstock.
• Jatropha and Algae oil can be used to manufacture
  both traditional molecules (FAME) and advantaged
  fuel molecules (HVO)

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2nd generation biofuels
EBI and BP BioFuels

• BP BioFuels
• BP has entered into a partnership with the
  University of California Berkeley and the
  University of Illinois to establish the Energy
  Biosciences Institute (EBI). The EBI will focus
  itself on three key aspects of energy bio
  sciences
• Development of new, more efficient
  bio-components for fuels.
• Improvement and acceleration of bio-conversion
  processes and increase of the portion of the
  biomass employment .
• Utilization of modern biotechnologies for
  biofuel production for the development of those
  plants with a higher energy output - they are to
  grow also on land on which no useful plants for
  the food production can be cultivated.
• BP invested 500 million US- into the EBI
  (program start July 2007)
• BP has recently founded the new business division
  BP BioFuels.

BP recognized and invested the growth potential
of Biofuels
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Summary (1)

• The utilization of biofuels is not new, but today
  sustainability is of more importance than in
  former times.
• Biodiesels made from vegetable oil, bioethanol
  ETBE made of sugar are nowadays of importance.
  The trend to synthetic biofuels (e.g. BtL),
  bioethanol ETBE from cellulose is clearly
  visible.
• Politicians in the US, Europe and other areas of
  the world support biofuels
• Oil and automotive industry want to implement
  fact-based realistic objectives instead of
  group-centered lobbying
• Biofuels avoid adding CO2 into the atmosphere, if
  the total CO2 balance is on the right side only.
• Biofuels can only deliver a limited contribution
  to security of supply

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Summary (2)

• Biofuels are currently not economic. The only
  exception today seems to be bioethanol from
  sugar cane in Brazil.
• There are limited technical restrictions only
  that cannot be solved (ethanolate corrosion,
  engine oil dilution etc.)
• Biofuels are a growing market
• BP supports the development of biofuels with our
  own business and our own product line
  (biobutanol)
• BP has recognized the growth potential of
  biofuels and invests.
• The implementation of biofuels will not take
  place without substantial structural adjustments.

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Wolfsburg, 18th March 2008
Thank you very much for your attention.