21 June 2006

DuPont, BP unite on biofuel plan

BP and DuPont will team to develop, produce, and market a next generation of biofuels.

The relationship between the two companies is not new. They have worked together since 2003 to develop advanced biofuels with properties that can help overcome the limitations of existing biofuels. The results of that work are now coming to market.

The companies look to leverage DuPont’s biotechnology and bio-manufacturing tools with BP’s fuels technology experience. Biofuels today account for less than 2% of global transportation fuels. Current projections show biofuels could become a significant part of the fuel mix in the future, possibly up to 20-30% in key markets.

The first product to market will be biobutanol, which will hit the U.K. as a gasoline bio-component. Initial introduction is on tap for the U.K. 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.

Both companies recognize while existing biocomponents are a starting point for the introduction of biofuels and will continue to play a role in the future, there are issues that need addressing before anyone can increase market penetration. In particular, compatibility with existing fuel supply and distribution systems, the ability to blend in higher concentrations without requiring vehicle modifications, and fuel economy are areas for improvement.

Biobutanol’s low vapor pressure and its tolerance to water contamination in gasoline blends allow for its use in existing gasoline supply and distribution channels. It has the potential to blend into gasoline at larger concentrations than existing biofuels without the need to retrofit vehicles, and it offers better fuel economy than gasoline-ethanol blends, improving a car’s fuel efficiency and mileage.

Biobutanol also enhances the performance of ethanol blends in gasoline by reducing ethanol’s impact on vapor pressure, one issue that hampers a wider use of ethanol in existing gasoline distribution channels.

Production plans to utilize a range of feedstocks such as sugar cane or beet, corn, wheat, or cassava and, in the future, cellulosic feedstocks from fast growing “energy crops” such as grasses or agricultural byproducts such as straw and corn stalks. Since production of biobutanol is similar to ethanol and uses similar feedstocks, existing ethanol capacity can retrofit to produce biobutanol.

For related information, go to www.isa.org/environment.