BP Biofuels a growing alternative

Biofuels in the New Energy Economy

Phil New, CEO BP Alternative Energy9 July 2013

Forward Looking Statements

This presentation contains forward-looking statements based on management’s current expectations, estimates and projections. All statements that address expectations or projections about the future, including statements about the company’s strategy for growth, product development, market position, expected expenditures and financial results are forward-looking statements. Some of the forward-looking statements may be identified by words like “expects,” “anticipates,” “plans,” “intends,” “projects,” “indicates,” and similar expressions. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Many factors could cause results to differ materially from those stated. These factors include, but are not limited to, changes in the laws, regulations, policies and economic conditions of countries in which the company does business; competitive pressures; successful integration of structural changes, including acquisitions, divestitures and alliances; research and development of new products, including regulatory approval and market acceptance, and seasonality of sales of agricultural products.

Forces driving adoption of biofuels

Convergence of forces will accelerate

biofuels adoption

energy security

climate change

rural development

Biofuels and the carbon cycle

Sugar extracted

Fermented

Distilled into biofuels

Blended into fuel and burned in car engines

Releasing carbon dioxide

Crops like sugar cane absorb CO2

as they grow

What makes a good transport fuel?

CNG Evs Unconv .Oil Biofuels

Safety – refuelling, and if a crash happens

Low emissions (HCs, CO2, NOx,, SOx etc.)

Low cost, universally available

Time value - made stored for months +

Cost competitive cost vehicle technology

High energy density per volume and mass

Biofuels: a renewable resource

Conventional crude production profile (indicative)

Time (years)

3020

Pro

du

ctio

n (

kbp

d)

0

20

Min 30 year production life

Sugar cane / lignocellulosic production profile

Global liquids supply and demand

India

Mid East

China

NGLs

IraqOther

S&C Am

Other

Saudi

Oil Sands

Biofuels

Brazil

US

BP Energy Outlook 2030, © BP 2013

Biofuels will meet an increasing share of the fuel market

• Biofuels make up around 3.5% of road transport fuel today, by energy, rising to around 6.5% by 2030.

• Brazil and the US are projected to be the biggest biofuels consumers.

• In 2030, biofuels consumption in Brazil is expected to make up around 38% and in the US around 24% of road transport fuel by volume.

BP Energy Outlook 2030, © BP 2013

Biofuels consumption

BP Biofuels: a focused strategy

Sugarcane ethanolBrazil

Advantaged moleculesbiobutanol

Advanced technology

lignocellulosics

Biofuels done well must be…

• Compete with fossil without incentives in the longer-term

Affordable

• Only mass production and mass distribution can make the difference

Scalable

• Environmentally, socially and economically sustainable

Sustainable

End to end capability to underpin our business

Agronomy Agriculture at scale Conversion technology Demonstration scale

Project management

Technology commercialization Fuel markets

11

12

BP-supported research institute

BP Biofuels technology

centre, San Diego

Cellulosic ethanol demonstration plant, Louisiana

Vivergo Fuels world-scale wheat-

to ethanol

Biobutanol technology

demonstration plant,

Butamax Advanced Biofuels

head office

Itumbiaraethanol mill

BP Biofuels’ investments

Tropical BioEnergia ethanol mill Ituiutaba

ethanol mill

Thank you