1. New frontiers for alternative energy
Notes
This slide pack is for internal presentation and internal distribution
This slide pack is for external presentation but NOT for external distribution
For copies of the AE brochure contact Lisa Hunter
For further information on AE refer to
Reid Buckley, Vice-President, BP Alternative Energy

2. Energy demand
Billion tonnes oil equivalent
- Reference scenario represents ‘business-as-usual’
- Alternative scenario assumes all climate change and energy security policies now being considered by governments are adopted
Source: IEA World Economic Outlook 2007

3. Source: IEA World Economic Outlook 2007
CO2 emissions
Billion tonnes CO2
Reference scenario represents ‘business-as-usual’
Alternative scenario assumes all climate change and energy security policies now being considered by governments are adopted
2°C scenario shows IEA calculation of path needed to prevent temperatures rising 2°C over pre-industrial levels
Source: IEA World Economic Outlook 2007

4. Energy drivers
Demand
Climate change
Energy security
High energy prices

5. Energy criteria
Availability
Sustainability
Reliability
Affordability

6. Alternative energy Low-or-no carbon Plentiful Secure
Increasingly attractive economically
“I’d put my money on the sun and solar energy. What a source of power! I hope we don’t have to wait until oil and coal run out before we tackle that.” Thomas Edison, 1931

7. Policy support for alternative energy
Policy targets in 66 countries
Feed-in tariffs in 37 countries
Mandates for biofuels in 17 countries
Source: Ren21 Global Status Report 2007, Renewable Energy Policy Network

8. Alternative energy: the market today
Demand growth p.a. since 2001
Global new investment in clean energy
$148.4bn
150 10 20 30 40
Total Primary Energy
Wind
Solar
Biofuels %
125
60% Growth
100
$86.5bn 75
58% Growth
$bn
$54.6bn 50
91% Growth
$28.6bn 25
The energy industry faces a difficult balancing act – how to meet growing customer demands for convenient and accessible energy – in the developed and developing world - while simultaneously addressing concerns about climate change and the security of their energy supply.
Primary energy = coal, oil, gas, nuclear, hydro, biomass and other renewables
Fastest growing sector of the global energy market.
Investment now exceeds $100bn p.a.
With such growth brings opportunity for AE, however this market has also attracted many new dynamic competitors all vying to participate in this growth opportunity.
2004
2005
2006
2007
Sources: Primary energy based on IEA WEO reference scenario. Renewables based on New Energy Finance
Grossed-up estimate based on disclosed deals. New investment only.
Source: New Energy Finance 8 8

9. Alternative energy: the market today
Demand growth p.a. since 2001
Global new investment in clean energy
$148.4bn
150 10 20 30 40
Total Primary Energy
Wind
Solar
Biofuels %
125
60% Growth
100
$86.5bn 75
58% Growth
Jobs in renewable energy – 2,400,000
$bn
$54.6bn 50
91% Growth
$28.6bn 25
The energy industry faces a difficult balancing act – how to meet growing customer demands for convenient and accessible energy – in the developed and developing world - while simultaneously addressing concerns about climate change and the security of their energy supply.
Primary energy = coal, oil, gas, nuclear, hydro, biomass and other renewables
Fastest growing sector of the global energy market.
Investment now exceeds $100bn p.a.
With such growth brings opportunity for AE, however this market has also attracted many new dynamic competitors all vying to participate in this growth opportunity.
2004
2005
2006
2007
Sources: Primary energy based on IEA WEO reference scenario. Renewables based on New Energy Finance
Grossed-up estimate based on disclosed deals. New investment only.
Source: New Energy Finance 9 9

10. Proportions of world energy today

11. US wind capacity - beating the projectionsGW
Actual capacity end-2007
EIA projection from 2004

12. BP Alternative Energy 12

13. BP Alternative Energy: a growing global business
Solar PV facility / market
Wind power
Hydrogen power
Biofuels facility / market
Gas fired power
Investing $1.5bn in 2008 – as much as in previous two years combined

14. BP Alternative Energy: solar power
30 years’ experience, 20 offices, employees, installations in 160 countries.
Manufacturing facilities in Frederick US, Bangalore, Madrid, Xian and Sydney.
Expecting to grow 60%+ by 2012.
Expanding production to achieve target sales of around 800MW with similar levels of production by 2010
Includes $97m expansion at Frederick – largest integrated solar manufacturing plant in US
Advanced Mono² process; support for research projects
Market Context
The solar photovoltaic (PV) market continued to grow in 2007, both in installed capacity and production although it was held back by a worldwide shortage of solar grade silicon. The solar market is growing at around 30% p.a. (IEA reference scenario 2007)
Global solar sales to reach around 4,000MW by 2010.
In recent years, BP Solar’s technology initiatives have focused on the development of new silicon feedstock and alternative wafer fabrication techniques. These advances, coupled with BP Solar’s significant improvements in device efficiency, provide a sound footing in the march towards grid parity (where solar electricity costs the same as conventional retail electricity) in the face of rising material costs. Moreover, the current scale of the solar industry, continued investment in solar R&D and sustained government support will allow the economic introduction of these advances in coming years.
To date BP Solar’s modules installed worldwide will offset more than 14 million metric tons of CO2 during their lifetime. That’s the equivalent of planting more than five million acres of trees!

15. BP Alternative Energy: wind power
Expected installed gross capacity MW
3GW
1GW
US land portfolio with potential for 15GW
Market Context
The solar photovoltaic (PV) market continued to grow in 2007, both in installed capacity and production although it was held back by a worldwide shortage of solar grade silicon. The solar market is growing at around 30% p.a. (IEA reference scenario 2007)
Global solar sales to reach around 4,000MW by 2010.
In recent years, BP Solar’s technology initiatives have focused on the development of new silicon feedstock and alternative wafer fabrication techniques. These advances, coupled with BP Solar’s significant improvements in device efficiency, provide a sound footing in the march towards grid parity (where solar electricity costs the same as conventional retail electricity) in the face of rising material costs. Moreover, the current scale of the solar industry, continued investment in solar R&D and sustained government support will allow the economic introduction of these advances in coming years.
To date BP Solar’s modules installed worldwide will offset more than 14 million metric tons of CO2 during their lifetime. That’s the equivalent of planting more than five million acres of trees!
30 MW 15 15

16. BP Alternative Energy: wind power
Built:
Colorado: Cedar Creek wind farm with partner Babcock & Brown – 300MW
Dhule, India - project built with partner Suzlon – 40MW
Netherlands: Two farms – total 30MW
Under construction:
Indiana: Fowler Ridge wind farm with Dominion – Phase I - 400MW
Texas: Silver Star project with Clipper - 60MW; Sherbino project with NRG Energy - 150MW
Kansas: Flat Ridge farm with Westar Energy MW
California – re-powering Edom Hills – 20MW
Market Context
The solar photovoltaic (PV) market continued to grow in 2007, both in installed capacity and production although it was held back by a worldwide shortage of solar grade silicon. The solar market is growing at around 30% p.a. (IEA reference scenario 2007)
Global solar sales to reach around 4,000MW by 2010.
In recent years, BP Solar’s technology initiatives have focused on the development of new silicon feedstock and alternative wafer fabrication techniques. These advances, coupled with BP Solar’s significant improvements in device efficiency, provide a sound footing in the march towards grid parity (where solar electricity costs the same as conventional retail electricity) in the face of rising material costs. Moreover, the current scale of the solar industry, continued investment in solar R&D and sustained government support will allow the economic introduction of these advances in coming years.
To date BP Solar’s modules installed worldwide will offset more than 14 million metric tons of CO2 during their lifetime. That’s the equivalent of planting more than five million acres of trees! 16 16

17. BP Alternative Energy: biofuels
Producing ‘good’ biofuels – which reduce emissions and enhance security without damaging habitats and forests
$1bn investment in Brazilian ethanol – made from sustainable sugar-cane - the most efficient feedstock currently available - greenhouse gas emissions reductions of up to 80%
Working with DuPont to demonstrate biobutanol
Investing $500 million over 10 years in the Energy Biosciences Institute to explore advanced biofuels and other applications of biotech to energy
Market Context
The solar photovoltaic (PV) market continued to grow in 2007, both in installed capacity and production although it was held back by a worldwide shortage of solar grade silicon. The solar market is growing at around 30% p.a. (IEA reference scenario 2007)
Global solar sales to reach around 4,000MW by 2010.
In recent years, BP Solar’s technology initiatives have focused on the development of new silicon feedstock and alternative wafer fabrication techniques. These advances, coupled with BP Solar’s significant improvements in device efficiency, provide a sound footing in the march towards grid parity (where solar electricity costs the same as conventional retail electricity) in the face of rising material costs. Moreover, the current scale of the solar industry, continued investment in solar R&D and sustained government support will allow the economic introduction of these advances in coming years.
To date BP Solar’s modules installed worldwide will offset more than 14 million metric tons of CO2 during their lifetime. That’s the equivalent of planting more than five million acres of trees! 17 17

18. Concept for Abu Dhabi power station
BP Alternative Energy: hydrogen energy
A schematic of the proposed Abu Dhabi plant - If applied to just 5 percent of the new electricity-generating capacity that the world is projected to require by 2050, hydrogen power projects would have the potential to reduce global CO2 emissions by around one billion tonnes a year.
The most recent project to be proposed is in Abu Dhabi, where early stage engineering design work is underway. Here, a 420MW natural-gas based hydrogen power plant could produce low-carbon electricity and capture up to 1.7 million tonnes of CO2 each year, injecting it into a producing oil field to maintain pressure and enabling the natural gas currently used for that purpose to be produced and sold. The CO2 could also potentially enable previously unrecoverable oil to be produced.
Concept for Abu Dhabi power station

19. New policies on alternative energy
Climate high on agenda for G8 and UN
Climate summit in Copenhagen December 2009
Carbon price of up to $60 projected by 2012*
National legislation or proposals underway in many countries
*Source: New Energy Finance

20. Alternative energy: future market drivers
Global new investment in Clean Tech forecast
Demand growth p.a E % 5 10 15 20 25
Total Primary Energy
Wind
Solar
Biofuels
Sources: Primary energy based on IEA WEO 2007 reference scenario. Renewables based on New Energy Finance
3000
$2-3trn
2000
$bn
1000
$148bn
2007
2030
Across the world we're at an inflection point as far as the future energy mix is concerned. If we act now to develop sustainable regulatory and fiscal structures, we will be able to smooth the transition to a lower carbon economy of the future.
Global population is forecast to grow by 1.5 billion by 2030 so, it is clear that the rapid economic and demographic growth forecast for the next 20 years is going to require even more primary energy - about 50% more than we use today, according to forecasts from the International Energy Agency.
This rapid rise in demand is driving the increase in greenhouse gas emissions. But much of this growth in demand is taking place in countries with very little indigenous oil and gas supplies. This, in turn, has magnified concerns for energy security. Therefore, these two challenges, climate change and energy security, need to be solved together.
Source: New Energy Finance, Nov 2007 20 20

21. Solar potential – Central America

22. Wind potential – Central America

23. New frontiers for alternative energy
Notes
This slide pack is for internal presentation and internal distribution
This slide pack is for external presentation but NOT for external distribution
For copies of the AE brochure contact Lisa Hunter
For further information on AE refer to
Reid Buckley, Vice-President, BP Alternative Energy 23