BP targets farms and feedstock as biofuel race gathers pace

BP is considering buying stakes in biofuel feedstock producers and investing directly in farming ventures to secure supplies as the global race for the low-carbon fuel gathers pace, a senior executive told Reuters.

Fuels made from vegetable oil, waste cooking oil and grease are expected to play a central role in reducing greenhouse gas emissions for the truck and aviation sectors where alternatives such as batteries and hydrogen remain elusive.

BP said it will increase biofuel output three-fold by 2030 to 100,000 bpd, or roughly 4.5 million tonnes per year, according to Reuters calculations.

The tripling is in line with forecasts from analysts at Barclays that predict global biofuel demand of 30 million tonnes by the end of the decade, compared with some 10 million tonnes now, and today’s crude oil demand of around 102 million bpd.

To reach its target, BP plans to construct by 2030 five biofuel plants processing “unloved” waste feedstock, known as HEFA, BP head of biofuels Nigel Dunn said in an interview.

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