*** Updated Information and discussion on this topic is happening in our fourm - follow this link*** 

BP has announced it is "bringing biofuels into the mainstream" and proudly telling us that they are doing it well ahead and in excess of the Federal Government's Biofuels Task Force 2005 targets. They are telling us that they are doing it for all the right reasons and in the interests of cleaner fuels and the environment.

Some points to consider:

• They clearly state that they consider the biofuels industry to simply be a part of the Petroleum  Industry, which they intend to own. This is no surprise as the Federal Government also believes this too, as the Petroleum Industry was really who was represented in the Australian Federal Biofuels Task Force 2005 .
• The heavy representation of the Petroleum industry in the Biofuels taskforce gives us no surprise when such a very low target for biofuels was set. Now BP pats itself on the back thanking the Federal Government for their cooperation and lauding itself for so easily crossing the finish line. What's wrong with this picture?
•  The Press Release mostly deals with Ethanol, which I might point out has very few environmental benefits, compared to biodiesel and the growing of sugar cane in QLD is already having significant effects in killing off our Great Barrier Reef due to bleaching. This will only get worse.
•  The mention of biodiesel is "in house". I would guess that BP are doing this not to meet such a low and easy biofuels target, but because they know that they will need a good lubricity additive for their Ultra Low Sulphur Diesel. Biodiesel is the perfect fit. They say that they will be using their own technology to do this at their own refinery, to add 5% biodiesel to their distillate. I don't see this as any real benefit to the Australian Biodiesel Industry.

BP Press Release follows below and can also be found here

press release

31ST MARCH 2006

BP brings biofuels into the mainstream

BP Australia today announced it has signed two contracts and a Memorandum of Understanding to provide to consumers over 200 million litres of biofuels per annum by 2008. The announcement signals the early delivery by a single company of over half of the Federal Government's national target of 350 million litres.
BP President, Mr Gerry Hueston said “BP will invest in refining and distribution infrastructure and secure product to enable biofuels to play a role in the future of Australia’s petroleum supplies. This announcement is the culmination of many years of work by BP and demonstrates our ability to deliver cleaner fuels to Australian motorists.”
“In delivering these initiatives we would like to acknowledge the support of the Federal and State Governments,” said Mr Hueston. “This work signals a unique change to the composition of Australia’s fuel supply and is evidence that much progress is being made towards the Federal Government’s biofuels target.”

The initiatives include:-

• Investment to allow production at BP’s Bulwer Refinery in Queensland of 110 million litres per annum of biodiesel through a new technology, with the fuel being made available to the market from 2007. The biomass feedstock has been secured through a contract for supply of tallow from Colyer Fehr Tallow Pty Ltd.
• A Memorandum of Understanding with Primary Energy Pty Ltd to purchase the entire output from a new ethanol plant to be constructed by Primary Energy in Kwinana, Western Australia. This would see the production of 80 million litres of ethanol per annum to be sold across Australia as e10 from 2008.
• A contract for purchase of 23 million litres of ethanol from CSR over 2 years. The ethanol will be purchased from CSR’s Sarina distillery near Mackay and blended to produce e10 that will be sold into the Queensland market later this year.

“BP believes biofuels have an important role to play in strengthening Australia’s security of supply,” said Mr Hueston. “However, the role of sound policy settings cannot be underestimated. The Government’s Energy White Paper and introduction of legislation for petroleum market reform are steps that will result in far greater confidence in investing in the future marketing and distribution of these products.

ENDS

For any media inquiries please contact:
Chandran Vigneswaran on 03 9268 3534 or 0410 479 002

BP Australia Pty Ltd

Notes to editors:

Biodiesel derived from hydrogenation of tallow

• At its Bulwer Refinery, BP will produce approximately 2 billion litres of diesel per annum containing a 5% component of biodiesel derived from tallow using new technology.
• BP will use a new, internally-developed technology which allows tallow to be converted to biodiesel using hydrogen.
• The Bulwer Refinery is particularly well suited to this technology.
• The biomass-feed, which will initially be tallow, will be sourced from Colyer Fehr Tallow Pty Ltd and other local sources.
• The fuel from the Bulwer Refinery will be made available to all current suppliers and will meet the relevant Australian specifications for conventional diesel, providing an equivalent level of performance to users.

Ethanol and e10

• The e10 fuel blended in Western Australia will be sold at BP’s sites in Perth and to other suppliers in Perth and across Australia from 2008.
• The ethanol produced at the new plant in Kwinana will use approximately 200,000 tonnes of Australian wheat as a feedstock. WA currently exports approximately six million tonnes of wheat.
• The Kwinana plant will also generate renewable electricity from biomass as an integral part of its process. Together, the renewable fuel and renewable electricity will result in a reduction in greenhouse gases to the order of 200,000 tonnes per annum.
• BP e10 delivers a similar engine performance to that of traditional petrol, with the added benefit of lower emissions.
• e10 fuel is not new for BP; in fact, BP commenced marketing e10 in Queensland in 2001. Fuel ethanol blends have been successfully marketed by BP in the United States under the Amoco and ARCO brands since the mid 1980s.
• BP has now sold more than 20 million litres of e10 in Australia without recording a single vehicle complaint.
• An updated list of BP locations at which motorists can purchase e10 is available online at www.bp.com.au.

General

• Biomass typically refers to plant materials and animal waste used as a source of fuel Examples include tallow, sugarcane, corn, wheat, sorghum, beets, vegetable oils, wood and straw.
• BP Australia is at the forefront of companies working to significantly improve the environment through the introduction of clean fuels.
• BP has a global commitment to deliver cleaner fuels and already offers low sulphur and low benzene products in over 130 cities worldwide.