BP is considering buying stakes in biofuel feedstock producers and making direct investments into farming ventures to secure biofuel supplies as global demand for the low-carbon fuel increases, BP head of biofuels Nigel Dunn told Reuters in an interview. BP has set a target of increasing its biofuel output to 100,000 barrels per day (bpd) by 2030. Dunn said part of the plan centers on construction of five biofuel plants to process waste feedstocks known as HEFA.
“They make perfect feedstocks for HEFA. The problem is there’s only so much of them in the world. And the more HEFA plants that get built, the more challenging the dash for those feedstocks is going to get.” Dunn said that this will mean BP needs to “almost certainly” seek stakes in feedstock manufacturers. “We are going to be in as an integrated chain,” he noted. “That’s our business today in fossil (fuel) and I think that’s going to be the winning way.”
He also said that he views cover crops and novel feedstocks as being key.
Dunn stated that BP will decide yet this year on whether to construct a HEFA plant in Australia with an intention to start production in 2026.
