Tag Archives: BP

BP expands in Brazilian biofuels with $680 mln buy

BP Logo

BP expands in Brazilian biofuels with $680 mln buy

Oil major BP has agreed to buy a Brazilian ethanol producer for $680 million, expanding its presence in the country’s biofuels industry in what it said was the largest deal to date for its alternative energy unit.

BP, which has spent recent months reshaping its portfolio as it looks to put the Gulf of Mexico oil spill behind it, said on Friday it would pay $680 million for an 83 percent stake in ethanol and sugar firm Companhia Nacional de Acucar e Alcool (CNAA).

The deal is expected to increase BP’s Brazilian production capacity to around 1.4 billion litres of ethanol equivalent per year from the current 435 million litre level, said the company, adding that it was the largest deal ever done by BP Alternative Energy.

“This acquisition is a key milestone in our strategy of building a leading position in sustainable and scalable biofuels,” said Philip New, Vice President of BP Biofuels in a statement.

BP said in November it was focusing its biofuel efforts on Brazilian sugar cane and U.S. energy grasses, holding off from making investments in the rest of the world for the timebeing.

Thanks and Source Reuters

BP: Biofuels only major way to decarbonizes road fuel

BP Logo

Biofuels only major way to decarbonizes road fuel

Biofuels represent the only way to significantly reduce carbon emissions in road transport fuel and are likely to account for at least 12 percent of supply by 2030, an official with oil giant BP said on Wednesday.

“There is no other alternative that I can really subscribe to in terms of decarbonizing road transport,” Olivier Mace, head of strategy, regulatory affairs and communications at BP unit BP Biofuels, told a conference organized by Agra Europe.

Mace said that electricity may play a role “one day” and biogas may also be in the mix, but “to get into 10 percent, 20 percent of (global) consumption we believe there is only one game in town today and that is biofuels.”

BP has forecast that about 12 percent of road transport fuel will come from biofuels by 2030, but Mace said that was a “conservative view.”

“Personally I think it could be even higher than that,” he said, noting the forecast did not include much production in Asia. He said China and India are likely to be among the countries with the strongest demand growth for road transport fuel as a whole over the next 20 years.

Mace acknowledged, however, that biofuels had become “embattled in a big controversy, especially here in Europe.”

BIOFUEL CRITICS

Critics have suggested that biofuels, which are currently produced mainly from crops such as grains, sugar and vegetable oils, can increase carbon emissions, particularly if rainforests are chopped down to facilitate production.

Mace said the debate needed to be centered on distinguishing between good and bad biofuels, not whether or not there should be biofuels at all.

“I am a firm believer of biofuels done well and a stern condemner of biofuels done badly,” he said.

A BP joint venture, Vivergo, is currently building a bioethanol plant in Hull in eastern England which Mace said would be the biggest in Britain.

Vivergo is a joint venture of BP, British Sugar and DuPont.

Mace told Reuters the plant, which will use more than 1 million metric tons of wheat to produce bioethanol and a high protein animal feed, would be on line later this year.

He said the plant is expected to produce carbon savings in excess of 60 percent compared to fossil fuel alternatives.

“Biofuels done well is a very important part of the energy mix going forward. It is going to be an evolving story with an increasing role of advanced technology,” he said.

BP Plans $1B Wind, biofuel Investments For 2011

BP Logo

BP Plans $1B Wind, biofuel Investments For 2011

BP plans to invest $1 billion in 2011 in its renewable energy business, roughly the same amount it invested last year.

During the company’s fourth-quarter earnings call, BP CEO Bob Dudley said that a bulk of the company’s green Capex would largely support biofuel and wind projects.

Since 2005 BP says its has invested about $5 billion in its renewable energy business.

Dudley mentioned that BP was planning to construct a biofuel refinery in the Southeastern U.S. in the next 12 months. This is likely BP’s wholly-owned Vercipia cellulosic ethanol Highlands County facility.

As part of its biofuel buildup BP has also acquired Verenium Corp’s cellulosic biofuels business for $98 million.

In Brazil BP holds a 50 percent stake in Tropical BioEnergia and plans to invest $1 billion to operate two ethanol refineries.

In the U.S. BP currently generates more than 1,200 megawatts of wind-powered electricity. In July it launched construction of the 250-megawatt Cedar Creek II wind farm in Weld County, Colo.

BP announced fourth-quarter net income, up 30 percent to $5.6 billion compared to the same time period a year ago.

BP says biofuels growth will outpace oil in 2011-2030 period

BP Logo

BP says biofuels growth will outpace oil in 2011-2030 period

In the UK, BP published for the first time a summary of its forward-looking analyses. In Energy Outlook 2030, BP projects that primary energy use will grow by nearly 40% over the next twenty years, with 93% of the growth coming from non-OECD (Organisation of Economic Co-operation and Development) countries. Non-OECD countries are seen to rapidly increase their share of overall energy demand from just over half currently to two-thirds. The report projects that, between 2010 to 2030, the contribution to energy growth of renewables (solar, wind, geothermal and biofuels) is seen to increase from 5% to 18%.

Global liquids demand is forecast to reach 102.4 million barrels per day (mmbpd) in 2030. The net growth of 16.5 mmbpd over the next 20 years comes exclusively from the emerging economies of the non-OECD. Biofuels production is expected to reach 6.7 mmbpd by 2030 from 1.8 mmbpd in 2010 and will contribute 125% of net non-OPEC supply growth over the next 20 years. Continued policy support, high oil prices, and continued technological innovations all contribute to the rapid expansion. The US and Brazil will continue to dominate biofuel production with 76% of total output in 2010 but falling to 68% in 2030 as output from Asia-Pacific begins to rise.

Three companies fined for breaches of UK biofuel rules

3 UK Companies fine by Biofuel Watchdog

Renewable Fuels Agency imposes fine on Yorkshire Petroleum Company, as well as BP and Total subsidiaries

The UK’s biofuels watchdog has today fined three companies a total of £60,000 for failures to comply with environmental legislation designed to reduce carbon emissions from the transport sector.

The Renewable Fuels Agency (RFA) hit Yorkshire Petroleum Company Ltd (Yopec) with the maximum £50,000 civil penalty after it failed to meet requirements under the Renewable Transport Fuel Obligations (RTFO) Order. The company intends to appeal against the charge.

Meanwhile, Aral Direkt GmbH, part of the BP group at the time of the infringement, and Total Additifs et Carburants Speciaux, part of the Total group, both received £5,000 civil penalties for non-compliance with the order.

The RTFO requires companies supplying more than 450,000 litres of petrol or diesel for use in road transport to match the fossil fuel they supply with a set percentage of biodiesel and report to the RFA on the carbon intensity and sustainability credentials of the biofuel it sells.

As with the Renewables Obligation (RO) scheme for energy generators and suppliers, companies can choose to meet their obligation by purchasing tradable certificates or elect to ‘buy out’ their obligation by paying a set rate for each litre of biofuel they failed to supply.

The RFA said that Yopec was fully aware of its obligation, but still did not meet it for the 2009/10 period, giving the company a market advantage over its competitors.

According to the RFA, the payments that the company has submitted are not sufficient to buy out its obligation, and the agency has given the firm until 17 January to pay the outstanding sum plus interest or risk further legal action.

“We will always come down hard on those who fail to meet their obligation, as this is at the heart of the RTFO as a carbon reduction measure,” said David Calderbank, head of regulation at the RFA. “This company had full knowledge of what was expected of it and failed to deliver. We take these breaches very seriously and will take whatever action is within our power to ensure compliance.”

Although both Aral and Total ACS met their 2009/10 obligations, an RFA investigation found that neither had registered with the body.

“This is a serious matter; if we hadn’t identified these companies the chances are that they still wouldn’t be meeting their obligation today,” Calderbank said. “We would remind any company that thinks it may be obligated that it is its responsibility to find out how the Order affects it, and to register with the RFA.

“We urge any company that may have any doubts about whether it is obligated to get in touch with us.”

The RFA is due to be abolished following the comprehensive spending review, but the RTFO will remain in place with regulatory and enforcement duties passing to the Department of Transport

Source and thanks Business Green

BP gushes over improved ethanol

BP Logo

BP gushes over improved ethanol

British Petroleum’s (BP) disastrous Gulf oil spill will forever be a part of our nation’s gasoline-powered history. The oil giant is trying to introduce an improved ethanol that could assist us in weaning ourselves off of oil and making that spill a distant memory. Recently, BP teamed up with the University of Illinois, Lawrence Berkeley National Laboratory, the University of California at Berkeley, and Seoul National University to engineer a yeast strain that can simultaneously ferment two different sugars to produce ethanol. This engineered yeast, a strain of Saccharomyces cerevisiae, can apparently ferment glucose and xlyose both rapidly and efficiently.

EurekAlert outlined the technicalities that make the engineered yeast unique, stating:

This approach … eliminates the costly step of adding a cellobiose-degrading enzyme to the lignocellulose mixture before the yeast consumes it. It has the added advantage of circumventing the yeast’s own preference for glucose. Because the glucose can now “sneak” into the yeast in the form of cellobiose, the glucose transporters can focus on drawing xylose into the cell instead.

In other terms, the engineered yeast can boost ethanol production and, at the same time, make the fuel both easier and cheaper to produce. That’s something worth gushing about.

Source and thanks Autoblog Green

Engineered Yeast Boosts Biofuel Production

Engineered Yeast Boosts Biofuel Production

Engineered Yeast Boosts Biofuel Production

Researchers have engineered a strain of yeast that simultaneously consumes two sugars found in plants, a process that could make biofuel production faster, cheaper and more efficient.

The researchers tweaked Saccharomyces cerevisiae, a yeast commonly used to convert plant sugars to bioethanol, to create a strain that consumes glucose and xylose far more efficiently than anything currently used. The new strain reportedly converts cellobiose (a precursor of glucose) and xylose to ethanol as quickly as it can ferment either sugar alone.

“If you do the fermentation by using only cellobiose or xylose, it takes 48 hours,” postdoctoral researcher Suk-Jin Ha of the University of Illinois said in a statement. “But if you do the co-fermentation with the cellobiose and xylose, double the amount of sugar is consumed in the same amount of time and produces more than double the amount of ethanol. It’s a huge synergistic effect of co-fermentation.”

UI food-science and human-nutrition professor Yong-Su Jin said the new strain is at least 20 percent more efficient at converting xylose to ethanol than other strains, which could bode well for the biofuel industry, as the government ramps up the amount of ethanol in our gasoline, and the federal Renewable Fuel Standard mandates increased production of biofuel.

The biofuel industry uses S. cerevisiae to convert plant sugars to bioethanol. Although S. cerevisiae is adept at utilizing glucose, it cannot use xylose, a major component of the lignocellulose found in stems and leaves. Those yeasts engineered to metabolize xylose do so slowly, adding to the time and cost of producing biofuel.

Jin and his colleagues wanted yeast that would quickly and efficiently consume both types of sugar at once, a process called co-fermentation. The research effort involved researchers from Illinois, the Lawrence Berkeley National Laboratory, the University of California at Berkeley, Seoul National University and BP. Yes, that BP.

The team built the faster, better strain by making several critical tweaks, according to the University of Illinois:

First, they gave the yeast a cellobiose transporter. Cellobiose, a part of plant cell walls, consists of two glucose sugars linked together. Cellobiose is traditionally converted to glucose outside the yeast cell before entering the cell through glucose transporters for conversion to ethanol. Having a cellobiose transporter means that the engineered yeast can bring cellobiose directly into the cell. Only after the cellobiose is inside the cell is it converted to glucose.

This approach, initially developed by co-corresponding author Jamie Cate at the Lawrence Berkeley National Laboratory and the University of California at Berkeley, eliminates the costly step of adding a cellobiose-degrading enzyme to the lignocellulose mixture before the yeast consumes it.

It has the added advantage of circumventing the yeast’s own preference for glucose. Because the glucose can now “sneak” into the yeast in the form of cellobiose, the glucose transporters can focus on drawing xylose into the cell instead. Cate worked with Jonathan Galazka, of UC Berkeley, to clone the transporter and enzyme used in the new strain.

The team then tackled the problems associated with xylose metabolism. The researchers inserted three genes into S. cerevisiae from a xylose-consuming yeast, Picchia stipitis.

Graduate student Soo Rin Kim at the University of Illinois identified a bottleneck in this metabolic pathway, however. By adjusting the relative production of these enzymes, the researchers eliminated the bottleneck and boosted the speed and efficiency of xylose metabolism in the new strain.

They also engineered an artificial “isoenzyme” that balanced the proportion of two important cofactors so that the accumulation of xylitol, a byproduct in the xylose assimilitary pathway, could be minimized. Finally, the team used “evolutionary engineering” to optimize the new strain’s ability to utilize xylose.

Jin said co-fermentation cuts cost and increases efficiency when producing bioethanol.

“We don’t have to do two separate fermentations,” he said. “We can do it all in one pot. And the yield is even higher than the industry standard. We are pretty sure that this research can be commercialized very soon.”

The research is presented in Proceedings of the National Academy of Sciences.

Source and thanks wired.com/autopia

BP reportedly bids for Brazil’s Cerradinho Group

BP Logo

BP reportedly bids for Brazil’s Cerradinho Group

BP PLC has bid $466 million for a 50% stake in Brazil ethanol maker Cerradinho Group as the oil major looks toward increasing its biofuel offerings, according to published reports.

BP PLC’s /quotes/comstock/13*!bp/quotes/nls/bp (BP 43.60, +0.61, +1.42%) bid faced a Friday deadline for a decision by the board of directors of Sao Paolo-based Cerradinho Group, according to a report by the Brazilian newspaper O Estado de Sao Paulo.

BP and Cerradinho spokesmen declined to comment on the deal. Cerradinho Group officials have said publicly that a strategic partner will be announced by the end of the year, and that the Brazilian firm will retain control of the company, according to the report.

The report comes after BP officials have signaled growth plans in biofuel.

James Primrose of BP Biofuels told Reuters on Nov. 4 that the oil giant has ambitious growth plans, especially in places like Brazil, with its high quality sugar cane available at favorable costs to make sugar-based ethanol.

BP last July said it would spend $98 million to buy technology from Verenium Corp. /quotes/comstock/15*!vrnm/quotes/nls/vrnm (VRNM 3.55, -0.19, -5.08%) , a maker of enzymes to help convert grasses and other vegetable matter into fuel.

In Brazil, BP announced plans to pay $60 million for a 50% stake in Tropical BioEnergia SA in 2008.

The alliance included Brazilian companies Santelisa Vale and Maeda Group. At the time, the group planned to invest $1 billion to build two refineries.

Source marketwatch.com

Frontier wheat club offers biofuel benefits

biofuel tax credit legislation

Frontier wheat club offers biofuel benefits

Frontier has revealed details of its farmer contract to supply wheat to the Vivergo bioethanol plant, being built on Humberside.

The factory will use 1.1m tonnes of wheat a year and is due to start production in mid 2011, with the demand for about 100,000t a month.

“We want to make this the most attractive home in the country for wheat,” said Frontier’s grain procurement manager Andrew Flux. “The pricing level in the area is going to go up and we are very keen to buy wheat every day of the year.”

Details of Frontier’s Humber Gold club for growers were unveiled yesterday (11 November), promising competitive prices and other incentives for those who signed up to supply a minimum of 120t of wheat.

Farmers will be able to send wheat to the plant at up to 17% moisture, with any penalties promised at less than it would cost growers to dry grain to the contract standard of 15%, said Mr Flux.

Other standard contract terms are a specific weight of 72kg/hl and 2% admixture, with payment on 21-day terms. Shorter payment terms of 14 and seven days will be available in some cases to encourage commitment and boost supplies at certain times. Contracts can be on a priced, unpriced or pool basis.

All soft wheat varieties will be accepted, but for harvest 2012 there could be incentives, including delayed payment terms on seed, for growing high-starch varieties which produce better ethanol yields, said Mr Flux.

The more grain a farmers commits through the Humber Gold club, the greater the benefits, said Mr Flux. For example, at 300t-plus there will be a moisture averaging benefit so that, as long as the whole contract is delivered at between 14 and 15.5% moisture, there would be no price penalty if the contract average is 15% or lower. Frontier’s Manchester Gold club, which supplies wheat for the Cargill starch plant near Manchester, includes a similar feature and it was this benefit that proved most popular with farmers, said Mr Flux.

The Vivergo plant will have flexible opening hours, allowing farmers to arrange loading to suit their schedule. Quality analysis will also be available within 30 minutes of a load being tipped at the plant.

Part of the service for Humber Gold growers will be a tool to evaluate the carbon score of their crop production, which would help them reduce their environmental impact, said Mr Flux.

The Vivergo bioethanol factory is a joint venture between BP, British Sugar and DuPont.

Source FWI.co.uk

BP sees biofuel growth from U.S. grass, Brazil sugar

BP Logo

BP Growth from Biofuels

BP is focusing its biofuel efforts on Brazilian sugar cane and U.S. energy grasses, holding off on investments in the rest of the world for the moment, a senior executive of the global energy group said on Thursday.

James Primrose, head of strategy at BP Biofuels, said government incentives and clear regulations in alternative energy gave the Americas region an advantage in the sector, compared to Europe or Asia where the landscape is murkier.

“Our growth plans are ambitious,” he told Reuters on the sidelines of an ethanol conference in Geneva, a European hub for commodity trading.

“In order to deliver on our plans, we have to focus on those markets first where there is the regulatory clarity and the cost-advantaged feed stocks.”

In July, BP announced a $98 million purchase of technology developed by U.S. partner Verenium, under which it took ownership of cellulosic biofuels technology.

The biofuels unit plans to increase its engagement with Brazil, given the high quality and relatively low cost of its sugar cane, Primrose said, without offering any details.

In the United States, the BP executive said government support for cellulosic biofuels had given a boost to investors. “In that regard, in terms of the clarity of the regulations, the U.S. is favorable to Europe,” he said.