BP Australia has signed two contracts and a Memorandum of Understanding to provide more than 200 million liters of biofuels to Australian consumers per annum by 2008—more than half of the Federal Government’s national target of 350 million liters.
BP is undertaking a number of actions to deliver on that promise. These include:
Investment to allow production at BP’s Bulwer Refinery in Queensland of 110 million liters per annum of synthetic diesel by an internally-developed technology that hydrogenates a tallow feedstock. (Similar in approach to that taken by Neste Oil with NExBTL—earlier post.)
The resulting bio-derived diesel will be blended into petroleum diesel at a 5% ratio to produce 2 billion liters of fuel which will be 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 liters of ethanol per annum to be sold across Australia as E10 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.
A contract for purchase of 23 million liters 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.