British Petroleum is acquiring a 50 percent stake in Tropical BioEnergia SA, a Brazilian company that's currently building a new ethanol plant in Edéia, Goias State, Brazil and planning a second plant. The new plant will have a capacity of 115 million gallons of ethanol a year from sugarcane. The combined investment in the two plants will be approximately $1 billion. Tropical BioEnergia SA is already a joint venture between Santelisa Vale and Maeda Group and the two original partners will each maintain a 25 percent stake in the company. BP is paying $60 million for its share.

The first refinery should start operations in the second half of this year and should hit full capacity in 2010. Supplies from the plants will be targeted at the domestic Brazilian market and could eventually be exported. The plants will both feature cogeneration capabilities using leftover materials after the sugar cane is crushed. The two plants are each expected to have 30MW of surplus electricity that they can sell in addition to the ethanol.

[Source: BP]

Let me tell you the story of the Victoria, a barge that produces 80 percent less NOx, 99 percent less SOx and 98 percent less particulates than standard barges on its travels. Oh, and the CO₂ production levels are also about 5 to 15 percent less.

How did the Victoria manage to accomplish this? First of all because she's using regular diesel instead of ship fuel. Regular diesel in Europe is low in sulfur as well as less polluting and more efficient. The Victoria also got a set of filters and a catalytic converter which had a relatively modest cost of 200,000 EUR. This makes the technology feasible and realistic for current barges and makes inland navigation really competitive against road freight in terms of environmental protection.

The Victoria was designed under the Creating Project, which is supported by BP and the European Union. The barge has been tested at work in Rotterdam, the Netherlands, to carry ship lubricants around.

[Source: El Pais]

Ah. Spring. Astronomically, it ... wait a minute. Spring, EIA forecast ...? I just wrote about this Jan. 9. As you can see here, the EIA predicted $3.50 for a gallon of gas by June, the end of Spring. Are they changing their forecasts already? YES! According to Reuters demand for gas has dropped a lot (2.4 percent last week) and EIA analyst Doug MacIntyre "said he 'certainly' expects that his agency next month will publish lower spring gasoline price forecasts." So it worked? Did higher gas prices actually change behavior, cause demand to go down and the sink the price of gas with it?

Not so fast. Doug says "High gasoline prices by themselves have never altered consumer driving habits. ... Only when combined with some other factor have they fallen. In this case, it's anxiety about a recession." That's not all, either. The price for a barrel of oil is below $90, falling ever since it hit $100 (see video below the fold). Sure, we reported Shell and Exxon made huge profits but BP only made $17.2bn last year. Aren't they the real victims in all of this confusion? (he said sarcastically)

So, what does all this mean? New forecasts, oil below $90, BP's lower profits? I will tell you exactly what it means: The U.S. government is really bad at predicting the future. A possible $1 swing for a forecast, a month after making it, for something just a few months away? Come on, EIA, you can do better than that. What will the price of oil and gas be? I don't know and I don't think anyone knows.

[Source: Reuters, CNN, Telegraph, NewsHour]

Now that concerns about a possible cartel have been discarded, the EU has authorised an ethanol plant that BP and AGF (Associated British Food) planned to build in the north of England.

Since BP is an oil company and AGF is dedicated to food, some voices raised against possible concerns in manipulating the market, affecting prices and free market concurrence. The resulting alliance between the two does not reach a significant percentage (less than 25 percent) of the market, so the EU gave its green light to the project.

The plant will start producing ethanol to be mixed with gasoline in 2010.

Related:

• BP, Sugar British and Dupont unveil plans to produce biofuels
• DuPont Biofuels VP says DP is ready to bring biofuel tech to the world
• Interview with Philip New, president of BP Biofuels, regarding their focus on butanol

[Source: Europa Press]

During a conference about climate change held in Asturias, Spain, a board member of BP, Luis Javier Navarro (completely unrelated to me) affirmed that butanol is a key factor in future fuels and that BP is investing in them. He said biofuels that compete with the food industry are an "error" and biofuels should otherwise be obtained from waste.

About CO2 capture, Mr. Navarro also spoke about how BP is reinjecting CO2 into empty natural gas fields thus managing to have at least one plant which produces no CO2. He also commented about BP's upcoming plans in generating electricity in Scotland from natural gas, with the resulting CO2 being reijected into empty oil fields under the North Sea.

Last and not least, he saw no immediate substitution for oil-derived fuels for at least 40 years. Instead he offered the alternative that the oil industry should try to be as carbon efficient as possible. Of course, he asked for a stable legal frame to guarantee further developments.

Related:

• BP, Sugar British and Dupont unveil plans to produce biofuels
• Interview with Philip New, president of BP Biofuels, regarding their focus on butanol

[Source: Europa Press via Econoticias]

British Petroleum (now known as simply BP) has found a way to dodge around a Great Lakes anti-pollution law. The law, written in 1970, set a limit on the amount of waste sludge and ammonia that could be dumped into Lake Michigan, as the level of pollution in the lake was getting way out of hand. A clause in the law stated that if a company was dumping at an amount under the limit, they could not increase their pollution, even if it was still under the primary limit.

Well, due to the extra-crude oil from Canada, BP is now processing at its Whiting, Indiana refinery, they don't know what to do with all the extra sludge (concentrated heavy metals) and ammonia (which causes algae blooms that kill fish). They therefore managed to get a water permit to pump 35 percent more sludge and 54 percent more ammonia into the lake, right up to the limit set by the '70s pollution law.

The refinery in question has had a large expansion added to handle the new process and needed capacity, though the original refinery - much of which is still in operation - was built in 1889 by the big man John D. Rockefeller's Standard Oil Co. Nifty as that is, the fact of the matter is that just three miles southeast of the Illinois/Indiana border, BP has a pipeline from the refinery to the lake 200 feet off shore, with an agitator at the bottom to mix the daily 1,584 pounds of ammonia and 4,925 pounds of sludge with the water. Is that worth the supposed 80 jobs this new permit has enabled BP to create, which supposedly is what justified the exemption? Sounds [dead] fishy to me.

[Source: Chicago Tribune]

General Electric and British petroleum are teaming up to build new hydrogen-fueled power generating plants. The plan is to use a gasification technology developed by GE to produce a hydrogen rich syngas from fossil fuel feedstocks. The separation process would also produce carbon dioxide which would be captured and sequestered in underground geological formations. This reverses the process that happens with most carbon sequestration projects which capture the carbon from the exhaust stream.

The GE process would start with either petroleum coke or bituminous coal and capture ninety percent of the carbon in the original fuel. The hydrogen gas would then be burned in the power plant to produce 500MW of electricity. The first two of five plants are planned for Carson, California and in Western Australia.

[Source: General Electric and BP]

We have shared with you the benefits of butanol over other potential biofuels in past articles. The basics are that butanol can be created from the same crops that are currently being used to create ethanol, and butanol carries more energy density. Ethanol is viewed mainly as a starting point for the biofuel alcohol industry, with butanol being the next logical step. Butanol was created with use in automobile applications in mind right from the start, which was not the case with ethanol, according to Philip New, president of BP Biofuels. The article with his comments can be found here and is definitely worth a read if you are interested in alcohol fuels. What are the chances that butanol takes ethanol's place in the biofuel market any time soon? I'm not sure, but I do know that backing from a huge oil company like BP is a good start.

[Source: Technology Review]

BP has pledged to put $500 million into a new research program that will investigate how bioscience can boost energy production and reduce energy's environmental impacts. A number of institutions have been selected to join with BP in the new Energy Biosciences Institute including the University of California Berkeley and its partners the University of Illinois, Urbana-Champaign and the Lawrence Berkeley National Laboratory.

The institute will aim to research cutting edge techniques for the production of new, cleaner energy sources, starting with biofuels for transportation. Other areas of research undertaken will be the conversion of heavy hydrocarbons to clean fuels, carbon sequestration, and improved recovery from existing oil and gas reservoirs.

Clean Edge reported California Governor Arnold Schwarzenegger as saying, "I can't tell you how excited I am that BP has chosen UC Berkeley and California for its new $500 Million Energy Biosciences Institute. This is a perfect complement to our new low-carbon fuel standard which will cut carbon emissions 10 percent from our cars by the year 2020, and with research facilities like the Energy Biosciences Institute, California will continue to be a leader in the Cleantech industry."

Analysis: Its great to see a petroleum company sink some of its vast profits into biofuels research but it is clear that BP still has its own agenda. No matter how much money you put into improving the recovery of petroleum from existing oil and gas reservoirs, its still going to run out one day. If I was BP, I'd buy A123 Systems and become the leader in lithium-ion batteries instead of carbon sequestration.

Related:

• BP says new technology is needed to fuel biofuels growth
• A123 batteries gets another $40 million in funding
• Cold storage for CO2 to solve global warming?

[Source: Clean Edge]

Click on the image for a gallery of high-res images of the Ford E85 Escape Hybrids.

Ford unveiled the Escape Hybrid E85 flex-fuel SUV last month at the DC Auto Show. The 85 percent ethanol-capable Escape looks like its just the start of many projected flex-fuel vehicle (FFV) models being produced Ford, which has committed to doubling its FFV line-up by 2010. This could be expanded to 50 percent of total vehicles produced by as early as 2012 if the market dictates.

Certainly the U.S. Federal Government is mandating that petrol producers ramp up biofuel output, including ethanol and biodiesel, from 4 billion gallons / 15 billion litres in 2006 to 7.5 billion gallons / 28.4 billion litres in 2012. President Bush, who wants to reduce petrol use by 20 percent over the next ten years, proposed an alternative and renewable fuel output of 35 billion gallons / 132.5 billion litres by 2017 in his recent State of the Union address.

Ford is pushing for more incentives on biofuel production as well as for plans to be drawn up for the long-term move to cellulosic ethanol production, created from crops such as switch grass and sugar cane. Ford already has a partnership with biofuel producer VeraSun Energy Corporation designed to expand E85 fuel availability along the Midwest Ethanol Corridor for drivers of flexible-fuel vehicles. Ford is also working with BP to develop a variety of sustainable mobility solutions that optimize fuel economy and powertrain performance as well as reduce carbon emissions.

"Working with BP we aim to propose solutions that are acceptable to the government as well as the oil and auto companies," said Christophe Mangin, corporate alliance manager in Ford Business and Product Strategy.

Analysis: With the U.S. Federal Government dedicated to the widespread adoption of ethanol, we can expect to see a lot more E85 FFVs on the roads over the next few years. But what we really need is a wholesale switch to cellulosic ethanol production to gain the massive efficiency increase this promises over corn-based ethanol production.



Related:

• AGB POLL: Best way to spend the DOE's money
• AutoblogGreen Drives the HySeries Ford Edge and fuel cell Explorer
• Ford sending E85-capable Ford Escape Hybrids out for testing

[Source: Ford press release]

Click on the image for two high-res images of the BP Ultimate Unleaded GM Holden Monaro.

BP had a display at the Brisbane Motor Show promoting their Ultimate Unleaded high octane fuel as improving performance and so reducing fuel consumption. BP Ultimate Unleaded has an octane rating of 98 in comparison to regular unleaded fuel in Australia has an octane rating of 91. Ultimate Unleaded also has three times less sulphur than regular unleaded plus engine cleaning additives resulting in cleaner emissions and more effective and complete combustion.

BP's display had a modified GM Holden Monaro where half the cylinders of the V8 engine were fed regular unleaded, while the other half were simultaneously fed Ultimate Unleaded. Used fuel intake valves had been removed from the engine to display the build up of carbonaceous deposits on the regular unleaded valves compared to the virtually clean Ultimate Unleaded valves. TVs also displayed video of the inside of the fuel intake manifold where again, the regular unleaded had coated the walls with carbonaceous deposits in comparison to the clean walls of the Ultimate Unleaded manifold.

In terms of actual performance results and fuel efficiency benefits, BP says that "Ultimate Unleaded can give you up to 8.3 percent more power, with an average power gain of 5.9 percent. Ultimate Unleaded can increase fuel economy by up to 4.2 percent with an average benefit of 2.8 percent."

Analysis: BP sells their Ultimate Unleaded product at a significant premium over regular unleaded so buyers need to be convinced of the benefits. Lower sulphur emissions and better performance is a good place to start - after all, 2.8 percent really adds up on millions of barrels of oil.



Related:

• GM Holden Commodore adds duel-fuel option
• Recent drop to $2 gas just might help Detroit's SUV sales, Europe is immune
• Ford, GM clash over best alternative fuel

[Source: BP]

Phil New, the president of BP Global Biofuels thinks that biofuels may comprise up to thirty percent of transport fuel needs by 2030. However, to reach that point, new methods of production will have to be developed. Large scale biofuel use will require that they be sourced from something other than food stocks. The worlds increasing food demands are at odds with the increasing demand for fuel. One of the steps to overcome this will be the commercial development of cellulosic biofuel production, that will allow higher yields from non-food crops.

Ethanol is also a rather poor fuel molecule compared to the more complex molecules of petroleum fuels. Ethanol only has about sixty percent of the energy content of gasoline. New sees ethanol as a jumping off point before developing more complex alcohols like biobutanol. BP has a partnership with DuPont to produce biobutanol at a British Sugar plant in England.

Related:

• Biobutanol - The Other White Meat

[Source: Automotive News - Subscription required]

In a move similar to London's push to charge for parking on a sliding scale related to vehicle emissions, employees at BP's Alternative Energy facility in Houston receive free parking if they drive the very greenest vehicles. BP pays for its employees parking based on their vehicle's emission levels, providing completely free parking only to highly efficient models like the Honda Civic Hybrid.

The parking fees paid by the company are calculated based on the number of tons of greenhouse gases the vehicle emits annually based on U.S. Environmental Protection Agency figures. Following are examples of the parking rebate for different models.

$75 credit (free parking) for emitting less than 5 tons of greenhouse gases a year:

• Honda Civic Hybrid
• Toyota Camry Hybrid

$50 credit for emitting less than 6 tons of greenhouse gases a year:

• Volkswagen Golf Diesel
• Pontiac Vibe
• Ford Escape Hybrid FWD

$25 credit for emitting between 6 and 7 tons of greenhouse gases a year:

• Ford Fusion
• Mazda MX5
• Chevrolet Flexfuel E85 Impala
• Mercedes Benz E320 Diesel

No credit is paid for vehicles emitting over 7 tons of greenhouse gases a year.

Taking public transport hasn't been forgotten either with works taking the bus or train having their travel passes fully paid for. The scheme has proven so successful that around 75 percent of workers now take the bus.

Analysis: its great to see more people taking public transport to work. Obviously its never going to work for everyone, but grab an iPod and a newspaper and commuting really isn't too bad on public transport. I'm all for sliding parking scales based on emissions and free parking for highly efficient vehicles like hybrids. Like electricity where if you use more you have to pay for it, I think people need to start realising that high emissions vehicles are consuming more than just lots of fuel.

Related:

• London parking authority setting fees based on CO2 emissions
• And now for something completely different: more personal transportation choices!

[Source: Tom Fowler / Houston Chronicle]

BP developed a split-engine display for Auto Africa to demonstrate the company's promise of better fuel economy. Borescopes inside the engine were linked to television monitors, allowing visitors to see the inner workings and the purported effects of the fuel. BP says its Ultimate fuel cleanses engine deposits and allows the engine to run more efficiently. I'm not sure if the fuel works as well as the company claims, but the idea of the scopes inside the engine always makes for interesting displays, especially when they're green.

[Source: ifrica.com]

On October 23, another hydrogen filling station opened up in downtown Detroit at the NextEnergyCenter. The station was built in a partnership between the Department of Energy, Air Products, Daimler-Chrysler, NextEnergy and BP. It will primarily be used by to fill up Daimler-Chrysler fuel cell vehicles that are being field tested. The facility uses the AirProducts Series 200 system which can store up to 50kg of hydrogen and dispense 20-40 kg of hydrogen per day. The Ford Focus fuel cell car ABG tried out recently holds 4kg of hydrogen, so the station can fill 5-10 such vehicles per day. Currently the pump is storing gaseous hydrogen that is trucked in. However, a representative from NextEnergy said that they are installing on-site hydrogen generation. Because NextEnergy is intended as a test and research facility they will have capability to do both natural gas reformation and electrolysis. The on-site generation will be operational in the spring of 2007.

NextEnergy is a non-profit organization that was set up in 2002 with seed money from the Michigan Economic Development Corporation to implement an economic development strategy for the state of Michigan to promote research and manufacturing of alternative energy technologies. The NextEnergy Center is located near the Wayne State University campus. It includes training and presentation facilities for meetings and exhibits as well as testing facilities for alternative energy systems. The center also has what they are calling a MicroGrid Power Pavilion. The MicroGrid brings together various power sources into a small electrical grid that can be used for systems testing and integration.

[Source: Air Products]