Biofuels for Consumers

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Biofuels for Consumers

• Adam J. Schubert
• Florida Farm to Fuel Conference - July 19th 2007

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All roads lead to biofuels
Increasing demand for transport fuel
Increasing concern over environment
Biofuels
Increasing concern over security of supply
A growing market for the agriculture sector
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Greenhouse Gas Emissions Reduction

• Transport energy demand is projected to double by
  2050
• Transport comprises 21 of CO2 emissions
• A variety of technologies can reduce GHG
  emissions in the future
• Vehicle efficiency
• Biofuels and other renewable fuels
• Demand reduction

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Biofuels for Consumers

• Economically Viable
• Delivery to market at competitive cost across the
  value chain

• Deliver Policy Objectives
• Diversity of Supply
• GHG Benefits
• Indigenous Supply

• Functional and Reliable
• Meets the needs of existing vehicles
• Supplied consistently
• Quality Assured

• Meet Consumer Needs
• Reliable vehicle operation
• Vehicle performance and range
• Cost

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The biofuels value chain
Feedstock Production
Conversion
Primary Transport
Storage Blending
Secondary Transport
Retail
End Use

• Develop Sustainable Production
• Diversify Supply
• Maximize Yields
• Minimize Diversion of Food Crops

• Minimize Local Air Quality Impacts
• Minimize CO2 Emissions
• Focus on Existing Fleet
• Meet Consumer Needs
• Reliability
• Performance
• Cost

• Minimize Carbon Footprint
• Maximize use of Existing Infrastructure
• Provide room for industry to find cost
  efficiencies

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Next generation Biofuels

• Advanced biofuels respond to all drivers -
  deliver on GHG, security of supply support
  agriculture sector
• Biobutanol has a number of attractive properties
• Produced from same feedstocks as ethanol with
  minimal process modifications
• Easily blended into gasoline
• Can use existing fuel infrastructure without
  major modification
• Potential to be used at higher blend
  concentrations than ethanol in unmodified
  vehicles
• An energy content closer to that of gasoline than
  ethanol reducing the impact on fuel economy for
  the consumer
• Biobutanol is complementary to ethanol and can
  enhance the performance of ethanol blends in
  gasoline
• 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

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BPs Biofuels Business

• Formed a new Biofuels business in June 2006
• Investing 500 M in new Energy Biosciences
  Institute (UC-Berkley, Lawrence-Berkley Labs, U
  Illinois) to provide a pipeline of biofuels
  technology for the business
• Partnering with DuPont to develop advanced
  biofuels-the first introduction is biobutanol.
• BP / DuPont / British Sugar investing in a
  world-scale wheat-based ethanol production in the
  North of the UK
• Site will also host a biobutanol demonstration
  facility and will convert the ethanol plant when
  technology becomes economic.
• BP to do limited fleet testing of biobutanol
  (produced in China at an existing facility) by
  end of 2007
• BP partnering with D1 to commercialize a non-food
  crop, Jatropha, as a source of biodiesel.
  Jatropha grows in Southeast Asia, Africa, South
  and Central America.

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Public Policy Framework

• Focus on goals
• Give the market room to develop innovative
  solutions
• Flexibility provides space for quicker response
  to changing conditions
• Emphasize solutions that can be used in existing
  vehicles and delivered through existing
  infrastructure
• These will provide the quickest results at the
  lowest cost
• These will minimize logistics requirements
• Make room for innovation
• Yesterdays molecules may not be the best answer
  for todays vehicles
• Research can produce improved solutions for
  tomorrow but only if they are allowed room to
  compete in the marketplace

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Biofuels Summary

• Climate change and energy supply diversification
  will continue to underpin increased use of
  biofuels
• Conventional biofuels are a positive first step
  in use of biomass
• GHG reductions modest, not all biofuels are
  equal
• Land use and competition for food crops are
  serious issues
• Standards are needed for carbon certification of
  biofuels and to ensure sustainable biomass
  production
• BP is working in partnerships to develop
  processes for production of second generation
  biofuels
• 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
• Better feedstocks
• Better processes
• Better fuel molecules

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Presentation titlesecond line if required

• BP Biofuels

• a growing alternative