Академический Документы
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December 2007
Agenda
Biofuels overview Why use them? BP position 1st vs. 2nd generation biofuels BP Australia position/activities Ethanol Biodiesel Renewable diesel
Why biofuels?
Biofuels = public policy issue usually require government support to be cost competitive with conventional fuels Can address multiple agendas: Local air quality Greenhouse gas abatement Energy security Agricultural support Regional development Different importance weighting in different countries
BP position on biofuels
We recognise biofuels as a fundamental component for countries to address energy security, climate change and rural development We will work in partnership with governments, industry and academia to be part of the solution Focus on 2nd generation technologies But need to be active participant now to gain experience and to credibility
Time/Sophistication
NOW NOW Conventional fuels Cleaner conventional fuels Conventional biofuels Advanced biofuels Internal combustion engine Hybrids Existing 2050? 2050?
Fuel
Hydrogen
Engine Infrastructure
Fuel cell
New
High
Carbon Content
Zero
Biofuels can extend conventional fuels as part of a gradual shift toward less polluting fuels Longer term options (e.g. hydrogen from a renewable source) offer greater potential reductions in emissions, but are a long way off and will require massive investment in infrastructure doing nothing in the interim is not an acceptable option 1st generation biofuels offer modest benefits but can be implemented relatively easily 2nd generation biofuels promise even greater benefits in a relatively short time frame (510 years)
Ethanol
20 billion
litres p.a.
Annual petrol consumption in Australia is around 20 billion litres Converting all this petrol to E10 would therefore require 2 billion litres of ethanol Australia exports enough grain, sugar and molasses to produce 3-4x this volume of ethanol Therefore we could support a sizable fuel ethanol production industry based on our feedstock production capacity However, current production is less than 150 ML p.a. Primarily CSR in QLD and Manildra in NSW It will take a number of additional plants and therefore a number of years to reach a billion litre p.a. industry However, there are many trends favouring expansion of the industry Federal Government targets, emissions trading, state government mandates, etc.
BP approach to ethanol
Prefer approach that can scale up as ethanol production capacity expands Where ethanol is available, blend 10% ethanol into our high volume regular unleaded grade No ethanol in premium grades for now to provide option for drivers of pre-1986 vehicles BP has major ethanol offtake agreements in place with CSR and Manildra making us the largest marketer of E10 in Australia We have invested millions in upgrading 4 East Coast terminals to store and blend ethanol E10 is now available at 110+ BP-branded sites in QLD, NSW and ACT Cumulative sales > 200 million litres without a registered vehicle claim related to ethanol Attributable to our holistic approach to product assurance BP fuel guarantee on E10 now extended to all well-maintained post-1986 vehicles built to run on 91 RON unleaded petrol
BP approach to quality
Procurement
Corrosion inhibitor additive Testing requirements are tighter than proposed Australian standard Dedicated storage to avoid/contain water ingress
Storage
Blending
Terminal
Controlled, metered inline blending at loading gantry Compatible detergency additive Tanks cleaned with mobile filtration unit Site staff training Daily tank dips with water finding paste Routine random sampling for quality and corrosiveness BP Fuel Guarantee
Rollout
Maintenance
Service Station
Post-sale
Biodiesel
Feedstock constraints
Domestic options all have limitations Used cooking oil not available in sufficient quantities to support commercial scale production Edible oils (canola, sunflower, etc.) prohibitively expensive Tallow more attractive, but as by-product of meat processing, production cannot increase to meet growing demand only enough supply in Australia to support 2-3 plants Imported palm oil from Asia is another option, but BP has concerns about environmental sustainability due to rainforest clearing All oils and fats, including tallow, are at historically high prices today Therefore opportunities to blend and market biodiesel on a large scale are limited in current environment Underscored by financial difficulties of several existing biodiesel producers Emergence of 2nd generation feedstock options (e.g. jatropha) in coming years should create more opportunities
Organisation Australian Biodiesel Group (ABG) Eco Tech Bio Diesel Biodiesel Industries Australia Natural Fuels Australia Australian Renewable Fuels (ARF) Australian Renewable Fuels (ARF) Biodiesel Producers Biomax TOTAL *Queensland Biodiesel *Axiom Energy
Location Narangba, Queensland Narangba, Queensland Rutherford, New South Wales Darwin, Northern Territory Picton, Western Australia Largs Bay, South Australia Barnawatha, Victoria Laverton Victoria
Annual Capacity 160ML 70ML 12ML 147ML 45ML 45 ML 60ML 100ML 639 ML (397 ML)
180ML 150ML
Customer trials
Key learning - most issues can be overcome through use of quality feedstock and imposing additional requirements and testing to the biodiesel
Biodiesel Standards
Density - biodiesel is more dense than diesel and therefore when blended biodiesel will have an increased density. Acidity of biodiesel is greater Australian Standard ASTM does not cover all the elements the European EN standard does Aus does not include: methanol and glycerides (tallow)/ glucocides (palm) These compounds can give rise to gums, flakes which block injectors. These gums can be decreased through using an anti oxidant and filtration. For example reducing the triglyceride content through additional specification requirements and filtering at zero degrees. Therefore if biodiesel meets the Aus Standard operability issues could still be experienced.
Storage
Terminal
Blending
Customer storage
Service Station
Post-sale
BP Fuel Guarantee
Renewable diesel
Overview
Renewable diesel is a preview of a 2nd generation biofuels molecule (hydrogenated diesel) discussed previously The BP Bulwer Island Refinery in Brisbane will process a mixture of tallow and crude oil components through our hydrocracking unit This mixture is heated, put under pressure, treated with hydrogen, and passed over a catalyst, which breaks down the tallow molecules into water, propane and diesel The diesel molecules are pure hydrocarbon chains identical to those already found in diesel Unlike biodiesel, the aggressive conversion process ensures that renewable diesel does not inherit any of the properties of the tallow, e.g. poor cold temperature performance Therefore, BP renewable diesel can be used in any vehicle without affecting performance Because it is made partially from renewable materials, lifecycle greenhouse gas emissions are lower than conventional diesel
Availability
Bulwer is the only refinery in Australia with a hydrocracking unit Therefore it will likely be the only producer of renewable diesel in the country The product will be available in markets supplied by the refinery (QLD and northern NSW only) Initial production occurred in Dec 2007 Continuous production will begin in 1Q08, with all diesel made from an average of 1.5% tallow Additional investment in infrastructure will be required to increase production to 5% in 2009 The product will still be marketed and labelled as diesel
Darwin
Weipa
Cairns Townsville
Geraldton
Bulwer
Perth Newcastle Sydney Esperance Adelaide Canberra
Melbourne
Summary
Ethanol E10 already on its way to mainstream fuel status in Australia BP experience = minimal impact on customers Biodiesel Limited commercial opportunities in Australia in short term, but promising in medium/long term Customer impact will depend on product assurance processes Renewable diesel World-leading advanced molecule developed in Australia No impact on customers/vehicles