New frontiers for alternative energy

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New frontiers for alternative energy

• Reid Buckley, Vice-President, BP Alternative
  Energy

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Energy demand 2005-2030
Billion tonnes oil equivalent
- Reference scenario represents
business-as-usual - Alternative scenario
assumes all climate change and energy security
policies now being considered by governments are
adopted Source IEA World Economic Outlook 2007
3
CO2 emissions 2005-2030
Billion tonnes CO2
Reference scenario represents business-as-usual
Alternative scenario assumes all climate change
and energy security policies now being considered
by governments are adopted
2C scenario shows IEA calculation of path needed
to prevent temperatures rising 2C over
pre-industrial levels
Source IEA World Economic Outlook 2007
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Energy drivers
Climate change

• Demand

High energy prices
Energy security
5
Energy criteria
Sustainability

• Availability

Affordability
Reliability
6
Alternative energy
Low-or-no carbon Plentiful Secure Increasingly
attractive economically
Id put my money on the sun and solar energy.
What a source of power! I hope we dont have to
wait until oil and coal run out before we tackle
that. Thomas Edison, 1931
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Policy support for alternative energy
Policy targets in 66 countries Feed-in tariffs in
37 countries Mandates for biofuels in 17
countries
Source Ren21 Global Status Report 2007,
Renewable Energy Policy Network
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Alternative energy the market today
Global new investment in clean energy
Demand growth p.a. since 2001
148.4bn
150
125
60Growth
100
86.5bn
58Growth
75
54.6bn
bn
50
91Growth
28.6bn
25
0
2007
2004
2005
2006
Grossed-up estimate based on disclosed deals.
New investment only. Source New Energy Finance
Sources Primary energy based on IEA WEO
reference scenario. Renewables based on New
Energy Finance
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Alternative energy the market today
Global new investment in clean energy
Demand growth p.a. since 2001
148.4bn
150
125
60Growth
100
86.5bn
58Growth
75
54.6bn
bn
Jobs in renewable energy 2,400,000
50
91Growth
28.6bn
25
0
2007
2004
2005
2006
Grossed-up estimate based on disclosed deals.
New investment only. Source New Energy Finance
Sources Primary energy based on IEA WEO
reference scenario. Renewables based on New
Energy Finance
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Proportions of world energy today
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US wind capacity - beating the projections
GW
Actual capacity end-2007
EIA projection from 2004
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BP Alternative Energy
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BP Alternative Energy a growing global business
Investing 1.5bn in 2008 as much as in previous
two years combined
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BP Alternative Energy solar power

• 30 years experience, 20 offices, 2000
  employees, installations in 160 countries.
• Manufacturing facilities in Frederick US,
  Bangalore, Madrid, Xian and Sydney.
• Expecting to grow 60 by 2012.
• Expanding production to achieve target sales of
  around 800MW with similar levels of production by
  2010

• Includes 97m expansion at Frederick largest
  integrated solar manufacturing plant in US
• Advanced Mono² process support for research
  projects

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BP Alternative Energy wind power
Expected installed gross capacity
MW
US land portfolio with potential for 15GW
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BP Alternative Energy wind power

• Built
• Colorado Cedar Creek wind farm with partner
  Babcock Brown 300MW
• Dhule, India - project built with partner Suzlon
  40MW
• Netherlands Two farms total 30MW
• Under construction
• Indiana Fowler Ridge wind farm with Dominion
  Phase I - 400MW
• Texas Silver Star project with Clipper - 60MW
  Sherbino project with NRG Energy - 150MW
• Kansas Flat Ridge farm with Westar Energy -
  100MW
• California re-powering Edom Hills 20MW

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BP Alternative Energy biofuels

• Producing good biofuels which reduce
  emissions and enhance security without damaging
  habitats and forests
• 1bn investment in Brazilian ethanol made from
  sustainable sugar-cane - the most efficient
  feedstock currently available - greenhouse gas
  emissions reductions of up to 80
• Working with DuPont to demonstrate biobutanol
• Investing 500 million over 10 years in the
  Energy Biosciences Institute to explore advanced
  biofuels and other applications of biotech to
  energy

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BP Alternative Energy hydrogen energy
Concept for Abu Dhabi power station
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New policies on alternative energy
Climate high on agenda for G8 and UN Climate
summit in Copenhagen December 2009 Carbon price
of up to 60 projected by 2012 National
legislation or proposals underway in many
countries
Source New Energy Finance
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Alternative energy future market drivers
Global new investment in 2030 - Clean Tech
forecast
3000
2-3trn
2000
bn
1000
148bn
0
2007
2030
Source New Energy Finance, Nov 2007
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Solar potential Central America
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Wind potential Central America
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New frontiers for alternative energy

• Reid Buckley, Vice-President, BP Alternative
  Energy