BP (BP.L) has signed contracts to supply over 200 million litres a year of biofuels to Australian customers by 2008 – about half the national government’s biofuels target set for 2010.
BP will produce 110 million litres of tallow-based biodiesel at its Bulwer refinery in Queensland by 2007, which it will use to produce around 2 billion litres of 5 percent blended fuel.
It will also purchase 80 million litres of ethanol a year from privately owned Primary Energy’s plant in Kwinana, Western Australia, from 2008, and 23 million litres from Australia’s biggest sugar-producer CSR (CSR.AX) over the next two years.
The ethanol will be used to make 10 percent blended fuel at BP’s terminals across Australia. BP’s overall Australian fuel production, which operates two refineries with combined capacity of 226,000 barrels of oil a day will stay at the same level.