Renewables are the fastest-growing energy source in the world today and we estimate that they could provide at least 15% of the global energy mix by 2040.
As part of our approach to building our alternative energy business, we aim to grow our existing businesses and to develop new businesses and partnerships to deliver competitive value in the fastest-growing energy sector.
Solar could generate 12% of total global power by 2040, in a scenario based on recent trends. That could grow to 21% in a scenario consistent with the Paris climate goals.
We have a 43% share in Lightsource BP and plan to invest $200 million over a three-year period. Lightsource BP aims to play a vital role in shaping the future of global energy delivery by developing substantial solar capacity around the world, and we are working with Lightsource BP to expand its global presence.
We believe that biofuels offer one of the best large-scale solutions to reduce emissions in the transportation system.
We produce ethanol from sugar cane in Brazil, which has life-cycle greenhouse gas emissions around 70% lower than conventional transport fuels. In 2018 our three sites produced 765 million litres of ethanol equivalent.
Brazil is one of the world’s largest markets for ethanol fuel. In order to better connect our ethanol production with the country’s main fuels markets, we established a joint venture in 2018 with Copersucar – one of the world’s leading ethanol and sugar traders. This includes operating a major ethanol storage terminal in Brazil’s main fuels distribution hub.
Our Tropical and Ituiutaba biofuels sites are certified to Bonsucro, an independent standard for sustainable sugar cane production. We are working towards certification for Itumbiara in 2019.
Our strategy is enabled by:
In July 2019, BP announced that it had agreed to form a 50:50 joint venture with Bunge – a leader in agriculture, food and ingredients - that will create a leading bioenergy company in one of the world’s largest fast-growing markets for biofuels. BP will combine its Brazilian biofuels and biopower businesses with that of Bunge to create a world-scale, highly-efficient producer of sugarcane ethanol in Brazil, BP Bunge Bioenergia. BP’s interest in the new venture will grow its existing biofuels business by more than 50%.
BP Bunge Bioenergia will have 11 biofuels sites in Brazil. With 32 million metric tonnes of combined crushing capacity per year, the joint venture will have the flexibility to produce a mix of ethanol and sugar. It will also generate renewable electricity - fuelled by waste biomass from the sugar cane - through its cogeneration facilities to power all its sites and sell surplus electricity to the Brazilian power grid. BP and Bunge’s assets are largely complementary, with sites in five Brazilian states including three in the key region of São Paulo. The combined business will be ranked the second largest player in the sugar cane ethanol biofuel industry in Brazil by effective crushing capacity.
The deal is subject to regulatory approval expected to complete in the fourth quarter of 2019.
Butamax®, our 50/50 joint venture with DuPont, has developed technology that converts sugars from corn into bio-isobutanol, an energy-rich bio product. Bio-isobutanol has a wide variety of applications. For example, it can be used in the production of paints, coatings and lubricant components. It can also be blended with gasoline at higher concentrations than ethanol, which can be transported through existing fuel pipelines and infrastructure. Butamax® has upgraded its ethanol facility in Kansas to produce bio-isobutanol.
We create biopower from bagasse, the fibre that remains after crushing sugar cane stalks. In 2018 our three biofuels manufacturing facilities produced around 892GWh of electricity – enough renewable energy to power all of these sites, with the remaining 70% exported to the local electricity grid.
This is a low carbon power source, with part of the CO2 emitted from burning bagasse offset by the CO2 absorbed by sugar cane during its growth.
BP has significant interests in onshore wind energy in the US. We operate nine sites in six states and hold an interest in another facility in Hawaii. Together they have a net generating capacity of just over 1,000MW.
At our Titan 1 wind energy site in South Dakota, we’ve partnered with Tesla to test how effectively wind energy can be stored.
In 2018 and 2019 we divested our wind energy operations in Texas, as part of a broader restructuring programme designed to optimize our US wind portfolio for long-term growth.