2006/6/20 BP/DuPont

BP and DuPont Announce Partnership to Develop Advanced Biofuels
DuPont bio-based science and BP fuels technology expertise will bring next generation biofuels to market

BP and DuPont today announce the creation of a
partnership to develop, produce and market a next generation of biofuels to help meet increasing global demand for renewable transport fuels.

The companies are leveraging
DuPont's world-class biotechnology and bio-manufacturing capabilities with BP's fuels technology expertise and market know-how. By pooling their knowledge and expertise, the two companies aim to be the world leaders in the development and production of advanced biofuels, driving the growth of biofuels, which today account for less than two percent of global transportation fuels. Current projections show that biofuels could become a significant part of the transport fuel mix in the future - possibly up to 20-30 per cent in key markets.

The first product to market will be
biobutanol, which will be introduced in the United Kingdom as a gasoline bio-component. Initial introduction is targeted in the UK in 2007 where BP and DuPont are working with British Sugar, a subsidiary of Associated British Foods plc, to convert the country's first ethanol fermentation facility to produce biobutanol. Additional global capacity will be introduced as market conditions dictate and a feasibility study in conjunction with British Sugar is already underway to examine the possibility of constructing larger facilities in the UK.

BP to Invest in Biofuels Technology

BP aims to invest more than $500 million over the next 10 years in research on advanced biofuels technology, processing and feedstocks in order to bring new, advanced biofuels to market.

Conventional biofuels such as ethanol and biodiesel are typically made from corn, sugar cane and beet, wheat or oilseed crops such as soy and rape.
Working with researchers, farmers and other partners, BP and DuPont aim to identify and develop crops with improved potential for biofuels, including
non-edible crops and fast-growing grasses that are grown specifically for fuel and farmed in an environmentally sensitive manner.

Crops grown for biofuels are then harvested and processed into biofuels.
BP and DuPont researchers are developing new process technologies to utilize new feedstocks and produce improved biofuels molecules.

The next generation of advanced biofuels offers many advantages:
Can be blended at higher rates into conventional fuels which can be used in unmodified vehicles ? helping to increase the diversity of energy supplies.
Advanced biofuels also often have higher energy content (more miles per gallon);
Advanced biofuels can also be more easily incorporated into the existing fuel supply, facilitating their introduction
Biofuels reduce the overall volume of CO2 entering the atmosphere by absorbing CO2 as plants grow while emitting roughly the same as conventional fuels when they are burned.
While CO2 is also generated in the cultivation and processing of biofuels, the net effect is still lower than with conventional fossil fuels. Advanced biofuels offer the advantage of potential for greater CO2 reduction benefits.

Today, biofuels account for less than 2% of global transportation fuels but this could increase to 30% in key markets in the future. Advanced biofuels provide a viable option for expanding energy supplies and accelerating the move to renewable transportation fuels with lower overall GHG emissions.

Advanced biofuels
Working together, two global leaders are creating the next generation of biofuels

To enable early introduction and market testing of biobutanol, initial production will be based on existing, mature technology. Initial production of biobutanol is targeted for the UK during 2007, where BP and DuPont are working with British Sugar to convert the country's first ethanol fermentation facility to produce
up to 30,000 tonnes a year of biobutanol from sugar beet feedstocks.