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SOURCE: GOOGLE MAPS
BP and Peruvian Sugarcane: A Proposal for Biofuel Expansion in a Business Friendly Environment
At current rates, 20-40% growth in energy consumption worldwide by 2030 (International Energy Agency)
Global Energy Expansion and BP Strategy
To meet growing demand, BP must continue to diversify its Energy Portfolio to compliment Hydro-Carbons• $4B investment in alternative energies since 2005• $1.5B invested in Biofuel (Sugar Cane Ethanol) since 2006
OECD: Organisation for Economic Co-operation and Development (N. America, E.U., Australia, Japan)
Non-OECD: China, India, Russia, African Countries (developing)
NORTHWEST DESERT COASTAL REGION
SOURCE: GOOGLE MAPS
Ethanol, Sugar cane, and Peru
SOURCE: PRM GROUP PERU
PERU BRAZIL U.S.
PRIMARY CROP SUGARCANE SUGARCANE CORN
CROP YIELD 200 MT/ha~15% sucrose
86 MT/ha~12% sucrose
21MT/ha
ETHANOL PRODUCTIVITY
3900 gallons/ha
1384 gallons/ha 1038 gallons/acre
• Unique controlled climate• Port locations• Sugar cane ethanol advantage
The Market for Ethanol
• 2006 mandate for gasoline to contain 10% ethanol
• Flex-fuel vehicles that are capable of using E85
• E85 stations not located central to demand
FDI in Peru: The Time is Right
• Peru Trade Promotion Agreement• Increasing political and economic stability• Parity in aspects of business development
comparable to Brazil, Mexico and Argentina• Local partnerships to facilitate process