Collaboration
Associated British Foods PLC
20 June 2006
Associated British Foods plc
Associated British Foods announces a collaboration with BP and DuPont on UK
biofuel production
For immediate release 20 June 2006
Associated British Foods plc ('ABF'), the international food, ingredients and
retail group has today announced a collaboration with BP and DuPont to begin
production of the next generation of biofuels in the UK. This announcement
coincides with BP and DuPont announcing a worldwide partnership to develop
advanced biofuels and signals ABF's intention to be at the forefront of UK
biofuels development. Production is expected to start in 2007.
Under the agreement, British Sugar's Wissington bioethanol plant, currently
under construction in Norfolk, will be converted to the production of
biobutanol. The plant will use locally grown sugar beet as the feedstock and
the biobutanol will be blended with petrol in the UK.
ABF, BP and DuPont have also agreed to undertake a joint feasibility study
which, subject to a successful conclusion, could lead to them cooperating in the
construction of much larger facilities for biofuels production using cereals.
Biobutanol will provide environmental benefits over purely mineral oil-derived
transportation fuels. It will reduce overall emissions of greenhouse gases and
is a sustainable alternative to fossil fuels.
Biobutanol can easily be blended with conventional grades of petrol and can
already be used at up to a 10% blend without any modification required to
existing vehicle technology. There is potential to increase this concentration
in the future. It has an energy content closer to that of petrol than ethanol
and so offers better fuel economy than petrol/ethanol blends. Furthermore, it
can be easily blended into conventional grades of petrol and has the potential
to be incorporated into the existing UK fuel supply infrastructure.
'The agreement with British Sugar to start production of biobutanol at their
Wissington plant has enabled us to accelerate its introduction into the UK
market,' says John Manzoni, Chief Executive of BP's refining and marketing
division. 'We look forward to making the first supplies of this new biofuel
available to our customers next year.'
'The conversion of the Wissington plant to produce biobutanol gives us an
excellent opportunity to showcase this new biofuel. With its superior
properties, biobutanol can rapidly increase the market penetration of biofuels,'
said Tom Connelly, Executive Vice President and Chief Innovation Officer for
DuPont.
George Weston, Chief Executive of Associated British Foods, said,
'Our collaboration with BP and DuPont will enable UK agriculture to be at the
forefront of the development of biofuel technology and will enable biofuels to
become a major part of the requirement for transportation fuels in the UK.'
For further information please contact:
Associated British Foods Tel: +44 (0)20 7399 6500
John Bason, Finance Director
Citigate Dewe Rogerson Tel: +44 (0)20 7638 9571
Jonathan Clare / Chris Barrie / Sara Batchelor
Notes to Editors
Associated British Foods is a diversified, international food, ingredients and
retail group with sales of £5.6 billion and over 42,000 employees in 41
countries. The group is one of Europe's largest food companies and has
significant businesses in Australia, China and the US. It is the largest
purchaser of agricultural products, including grain and sugar beet, and is the
leading supplier of animal feeds in the UK.
British Sugar is the UK's leading supplier of sugar products to the food
manufacturing and consumer markets. It is recognised as the most efficient
sugar producer in Europe and has considerable expertise in asset utilisation,
energy efficiency and process technology. British Sugar has operations in
Poland and China with considerable experience in operating in developing
countries and in joint venture operations.
BP is of one of the world's largest energy companies, providing its customers
with fuel for transportation, energy for heat and light, retail services and
petrochemicals products for everyday items. It is the largest oil and gas
producer in the US and is one of its largest refiners. BP has a global network
of around 25,000 service stations, 1,300 of which are in the UK.
DuPont is a science company. Founded in 1802, DuPont puts science to work by
creating sustainable solutions essential to a better, safer, healthier life for
people everywhere. Operating in more than 70 countries, DuPont offers a wide
range of innovative products and services for markets including agriculture,
nutrition, electronics, communications, safety and protection, home and
construction, transportation and apparel.
This information is provided by RNS
The company news service from the London Stock Exchange