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