bp buys 30% of the UK's largest provider of hydrogenated vegetable oil fuels
bp acquires a 30% stake in Green Biofuels Ltd. and will work with the company to decarbonize the construction, freight, off-road, and marine industries. Green Biofuels' renewable hydrogenated vegetable oil (HVO) fuels can replace diesel. The investment expands bp's global biofuels portfolio, which the company believes will help reduce emissions.
Green Biofuels Ltd (GBF), the UK's largest provider of hydrogenated vegetable oil, has acquired a 30% stake in bp (HVO). The products of GBF are made from renewable feedstocks such as vegetable oils, animal oils, and fat. HVO Gd+ is a low-emission advanced HVO fuel that can be used as a direct drop-in replacement for diesel.
GBF's growth will be aided by bp's investment as it works with businesses looking to transition away from traditional diesel fuel in assets such as transport vehicles, temporary generators, and construction machinery. The investment in GBF will broaden BP's global biofuels portfolio and lower carbon solutions for UK customers, in line with the company's strategic goal of expanding its bioenergy businesses as it transitions to become an integrated energy company.
GBF, which was founded in 2013, is the UK's largest HVO provider, having delivered over 55 million litres of HVO products to the UK market in the last two years. HVO Gd+, which contains GBF additives, can be used in diesel engines with no modifications or capital expenditure. As a drop-in replacement fuel, HVOs have the potential to play an important role in supporting lifecycle emission reductions in many sectors, providing a commercially viable decarbonization option for fleet owners, construction companies, and vessel operators.
"We are thrilled to be collaborating with Green Biofuels, who are at the forefront of HVO supply in the UK market, offering their customers solutions to help them decarbonize today. We are excited to support their continued growth and collaborate on these immediately available alternatives. This investment expands our biofuels portfolio as we move toward becoming an integrated energy company."
Sven Boss-Walker, Senior Vice President of Refining and Product Trading By using HVO fuels, diesel engine operators can typically reduce lifecycle greenhouse gas emissions by 87%1 while also improving local air quality2. Independent field and controlled environment tests have shown that, when compared to standard diesel emissions, HVO Gd+, which is frequently made from waste products, achieves up to 85% particulate reductions and up to 30% nitrogen oxide reductions. 3
"We are delighted to be working with Green Biofuels, who are at the forefront of HVO supply in the UK market, providing their customers with solutions to help them take steps to decarbonize today,"
said Sven Boss-Walker, SVP refining & products trading at BP.
"We are excited to support their continued growth and collaborate on these immediately available alternatives. This investment expands our biofuels portfolio as we move toward becoming an integrated energy company."
Green Biofuels CEO William Tebbit stated,
"Our mission is to support the net-zero energy transition by providing an immediate solution that reduces carbon and air pollution emissions today. Our fuels allow businesses to transition to new technologies when they have been proven economically and operationally. We are honored to be working with a company like BP, which understands the importance of making positive changes right away."
This investment is yet another example of BP's efforts to decarbonize difficult-to-abate sectors. bp announced a stake in Gasrec in December 2021, the UK's largest dual provider of bio-liquified natural gas (LNG) and bio-compressed natural gas (CNG) to the heavy goods vehicle industry.
Source: BP news