BP Biofuels Investment

BP PLC
26 June 2007


June 26, 2007

                     BP, ABF AND DUPONT UNVEIL $400 MILLION
                           INVESTMENT IN UK BIOFUELS

The wide spread availability of biofuels in the UK took a major step forward
today as BP, Associated British Foods (ABF) and DuPont announced major
investment plans, totalling around $400 million, for the construction of a world
scale bioethanol plant alongside a high technology demonstration plant to
advance development work on the next generation of biofuels.

The bioethanol plant, in which BP and ABF subsidiary British Sugar would each
hold 45 per cent with DuPont owning the remaining 10 per cent, will be built on
BP's existing chemicals site at Saltend, Hull. Due to be commissioned in late
2009, it will have an annual production capacity of some 420 million litres from
wheat feedstock.

Although initial production would be bioethanol, the partners will look at the
feasibility of converting it to biobutanol once the required technology is
available.

'We are delighted to be announcing, subject to the necessary approvals, the
construction of a world scale bioethanol plant in Hull with our partners ABF and
DuPont to enable petrol biocomponents to be available to meet the 2010 Renewable
Transport Fuel Obligation,' said Iain Conn, chief executive officer of BP's
refining and marketing business. 'In addition we have also selected Hull as the
preferred location for a planned biobutanol demonstration plant as laboratory
research work on the production of this first advanced biofuel that we and
partners DuPont will bring to market is progressing well.'

Discussions are currently underway to explore strategic partnerships with grain
trading business Frontier Agriculture for the supply of locally grown wheat
feedstocks and with co-product marketing company AB Agri in relation to DDGS, a
byproduct of bioethanol manufacture. It is expected that formal agreements would
be finalised after regulatory approvals are obtained.

'We are delighted that this exciting new project has achieved this important
milestone, and are confident that construction work will commence early next
year after the required regulatory approvals are obtained,' said Mark Carr, CEO
of British Sugar. 'Front end engineering and design work will commence
immediately with Aker Kvaerner leading the project and their joint venture
partner Praj providing the technology expertise.'

Although the plant will be built from scratch, it will have access to the
existing infrastructure at the BP site for essential supporting services. Once
operational it will provide around 70 new full-time posts in addition to the
employment opportunities generated by the construction phase.

The BP site in Hull has also been selected as the preferred location for a
planned biobutanol demonstration plant, funded and owned equally by BP and
DuPont which could produce around 20,000 litres of biobutanol a year from a wide
variety of feedstocks.

'Over the last year, we have accelerated the commercial development of
biobutanol,' said John Ranieri, head of DuPont Biofuels. 'The demonstration
facility, which will begin operation in early 2009, will develop the processing
parameters and further advance the commercial deployment of our new technology.
At the same time, the growing market demand for biofuels is significant. We are
concurrently investing in the Hull bioethanol facility with the intention to
increase that investment once biobutanol process technology development is
completed and conversion feasibility is validated.'

To begin market development of biobutanol, BP and DuPont are also establishing
initial introduction plans for biobutanol in the UK. The companies will import
small quantities of biobutanol, sourced from an existing first generation
manufacturing facility in China. The first product is expected to arrive by the
end of the year and will be used to carry out infrastructure and advanced
vehicle testing.

This testing will build upon initial laboratory engine tests using conventional
butanol which indicated that butanol has similar fuel performance properties to
unleaded petrol. In addition, work will be undertaken to gather comprehensive
data on the environmental footprint and sustainability of this next generation
fuel.

'The three initiatives we have announced today represent a significant first
step in delivering BP's strategy for biofuels,' commented Phil New, head of BP
Biofuels. 'As a UK based company, BP is delighted to be the first energy company
to commit significant resources to building this important market of the future
in the UK, and at the same time, bring a new product of global relevance closer
to reality.'

Notes to Editors:

•   An electronic press kit, including downloadable images, is available
    at http://www.launchgroup.co.uk/epk/bpbiofuels/

•   Transport accounts for around 21 per cent of all carbon dioxide
    emissions.

•   The Renewable Transport Fuel Obligation (RTFO) requires 5 per cent of UK
    transport fuel to come from biofuels by 2010.

•   BP and DuPont announced the creation of a partnership to develop, produce
    and market a next generation of biofuels in June 2006. The partnership
    leverages DuPont's world-class biotechnology and bio-manufacturing
    capabilities with BP's fuels technology expertise and market knowledge.

•   Biobutanol has a low vapour pressure and its tolerance to water
    contamination in gasoline blends facilitate its use in existing gasoline
    supply and distribution channels. It has the potential to be blended into
    gasoline at larger concentrations than existing biofuels without the need to
    retrofit vehicles and it offers better fuel economy than gasoline-ethanol
    blends, improving a car's fuel efficiency and mileage.

•   BP is already a leading player in the biofuels market, accounting for around
    10 per cent globally, blending and distributing 800 million gallons of
    ethanol in 2006.

•   BP is funding a $9.4 million project in India to demonstrate the feasibility
    of producing biodiesel from jatropha curcas.

•   BP's Bulwer Refinery in Queensland, Australia will produce around 110
    million litres of biodiesel a year from tallow feedstock.

Further information:

BP Press Office, London, tel: [phone]
Associated British Foods, London, tel: [phone]
DuPont Press Office, USA, tel: [phone]

- ENDS -




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