BP scales back plans for new renewable diesel, SAF projects but will still more than double coprocessing volumes by 2025

BP announced June 20 that it is scaling back plans for development of new sustainable aviation fuel (SAF) and renewable diesel projects at its existing sites.

The oil giant said it is pausing planning for two potential projects while continuing to assess three for progression.

In addition, BP said it continues to expect to more than double biofuels coprocessing volumes to 20,000 barrels (840,000 gallons) per day by 2025, with coprocessing investment plans unchanged.

Biobased Diesel Daily® reached out to BP for more information, including which biofuel projects are being paused and which projects are continuing to be assessed.

According to a spokesperson with BP, the three projects that will continue to be assessed are in Kwinana, Australia; Castellon, Spain; and Rotterdam, the Netherlands.

“We will pause two we had been considering at our Lingen, Germany, and Cherry Point (Washington, U.S.) refineries,” the spokesperson told Biobased Diesel Daily®. “At these sites we will instead focus on coprocessing of biofeedstocks.”  

The news of BP scaling back its biofuels projects was revealed at the same time the company announced it would acquire Bunge’s 50 percent holding interest in its BP Bunge Bioenergia S.A. joint venture, one of Brazil’s leading ethanol companies.

Upon completion of the acquisition, BP will become sole owner of the industrial-scale sugarcane and ethanol business.

The enterprise value of the stake to be acquired is approximately $1.4 billion, according to BP.

Following completion, BP will have the capacity to produce around 50,000 barrels (2.1 million gallons) a day of ethanol equivalent from sugarcane through BP Bunge Bioenergia’s 11 agro-industrial units across five Brazilian states.

The company said it operates with an integrated business model that covers the entire production chain through to sales of ethanol and sugar.

BP added that it believes ownership will also offer the potential to unlock further growth opportunities in the region, and to develop new platforms for bioenergy such as next-generation ethanol, sustainable aviation fuel (SAF) and biogas.

“BP Bunge Bioenergia is widely recognized as a leader in the industry,” said Emma Delaney, BP’s executive vice president of customers and products. “I am excited by the opportunity for BP to now add further value from our trading and technology capabilities. BP was an early entrant into the bioenergy business in Brazil and we look forward to continuing to grow and develop here. Focusing our plans to develop new biofuels projects is also driven by value. Taken together, these changes can enable us to deliver the growth and returns we expect from biofuels, but in a simpler, more focused way. This is fully in line with BP’s priorities of driving focus into the business and growing shareholder returns.“

BP said it is targeting to grow its biofuel production and biogas supply to 50,000 barrels (2.1 million gallons) per day and 40,000 barrels (1.68 million gallons) of oil equivalent per day, respectively.

By 2030, BP said it aims to grow its biofuel production and biogas supply to 100,000 barrels (4.2 million gallons) per day and 70,000 barrels (2.94 million gallons) of oil equivalent per day, respectively.