biofuels done well - uk parliament · biofuels will meet an increasing share of the fuel market in...
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BP Biofuels a growing alternative
Biofuels done well
Jo Howes
July 2012
Forces driving adoption of biofuels
Convergence of forces will
accelerate biofuels adoption
Biofuels will meet an increasing
share of the fuel market
In the next 20 years:
• We will need around
40% more energy in
2030 than we consume
today
• Biofuels make up 3.5%
of global transport fuels
used today (by energy).
If done well, this could
rise to 7% by 2030.
• Major growth in biofuel
production will take place
in the US, Brazil and
Europe.
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1990 2000 2010 2020 2030
Mb/d
Biofuels supply Asia Pacific
Other
US
Europe
Brazil
BP Energy Outlook 2030, © BP 2012
Bioenergy is crucial to meeting UK
GHG targets
• UK Bioenergy Strategy shows that sustainable bioenergy could contribute 8-
11% to the UK’s total primary energy demand by 2020 and 12% by 2050
• Excluding biomass from the energy mix would significantly increase the
cost of decarbonising our energy system
• Bioenergy is
important for heat,
power and transport
fuels
• Biofuels can offer a
material and cost
effective contribution
to carbon reduction
from road transport
BP Biofuels strategy is based on 4 key
principles…
• Low-cost
• Low-carbon
• Scalable
• Sustainable
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20%
40%
60%
80%
100%
120%
Cellulosic Ethanol
Ethanol from EU wheat
Ethanol from sugar cane, Brazil
GHG reductions from biofuels (vs. gasoline)
Source: EU Renewable Energy Directive Annex V Typical GHG emission savings 2009
Source: WWF Energy Report 2011, 250mha energy crop case
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7000
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9000
10000
Biofuel yield
litres biofuel (gasoline equivalent)/hectare/year
Ethanol
Biodiesel
Advanced
Global biomass resource potential split by
feedstock type
Densely
located,
consistent
feedstocks
Evolution of lignocellulosic ethanol
production cost
..leading to a focused strategy
Sugarcane
ethanol
Brazil
Advantaged
molecules
biobutanol
Advanced
technology
lignocellulosics
Ensuring crop sustainability
Element Potential impact Mitigation
En
viro
nm
en
tal
Habitat and
bio-
diversity
• Direct biodiversity and
habitat loss
• Indirect land effects
• Legislation – avoiding high impact areas
• Voluntary sustainability schemes
• Advanced crops - high yields, low land use
• Set aside within plantations
Water • Water consumption
• Water pollution
• Choice of location and crop type
• Improved irrigation and recycling
• Targeted breeding to reduce water needs
Air quality • Sugarcane burning • Mechanised harvesting without burning
Soil
• Soil carbon content loss
• Acidification from
chemical fertilisers
• Precision agriculture, minimise fertiliser use
• Crops requiring less fertilisers
• Perennial crops: no ploughing each year
So
cial Labour
• Child labour, forced
labour, wages, health and
safety
• Good HR practices
• Voluntary social standards
Community
• Contested land rights,
local food security, job
creation
• Choice of location, risk assessment
• Local sourcing
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Sugarcane ethanol in Brazil
• Significant producer of ethanol in Brazil: Three operating mills at $750 million
total investment, which will each produce up to 480 million litres / year each
• Grown in designated sugarcane areas, over 1000 km from the Amazon region
• GHGs: reduction of over 70% compared with fossil gasoline
• Power: waste product (bagasse) used to generate power - each refinery to
export at least 70,000 MWh/yr of surplus electricity to the grid
• Setting aside over a fifth of farm land to preserve and improve native
vegetation and biodiversity of species
• Tropical BioEnergia received SA8000 certification from SAI (Social
Accountability International) in Feb 2012
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Cellulosic ethanol in the US
• Focus on the Southern Gulf
States of the US
• Constructing a 20,000 acre farm
• Conversion facility to break
ground this year
• 36 million gallons per year from
high-yielding energy grasses
• GHG savings of over 60%
expected
• Uses low quality agricultural
land
• Uses precision agriculture to
minimise fertiliser, water and
energy use
Highlands
Advantaged molecules: Biobutanol
and Sugar to diesel
• Technology demonstration plant
in Hull to accelerate the
commercialization of biobutanol
• Will validate technology
developed by Butamax Advanced
Biofuels (a BP/DuPont JV),
allowing it to be deployed at full
commercial scale
Crops take
energy
from the
sun and
CO2 from
the air and
store it as
sugars and
biomass
Sugars are extracted
from the crop and the
business
A single celled
organism is used to
convert the sugars to
oils
Oil is extracted and
upgraded so it is
suitable for use as
transportation fuel
• BP/DSM Sugar to Diesel
collaboration
Wheat ethanol here in the UK:
Vivergo
• JV between AB Sugar, BP and Dupont
• The largest ethanol producer in the UK
• The UK’s largest source supplier of
animal feed
• 1.1 million tonnes of feed grain wheat
from Yorkshire and Lincolnshire
• Will produce 420 million litres of
bioethanol – a third of the UK’s
requirements
• Will produce 500,000 tonnes of animal
feed per year – reducing farmers’
dependence on imported protein feeds
• GHG savings in excess of 50% on a
well-to-wheel basis
• Creating around 80 full time, skilled
jobs, and is expected to create and
support a further 1000+ indirect jobs
The future of sustainable bioenergy
• Biomass can make a major contribution to future global energy
supply
• We believe that biofuels done well are a crucial part of the future
transport energy mix
• We need to focus on deployment of sustainable bioenergy projects
now, including biofuels done well
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