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BP Magazine on Sugarcane Biofuels

BP Magazine on Sugarcane Biofuels

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Published by SugarcaneBlog
BP plans to invest between $5 billion and $6 billion in Brazilian ethanol projects over the next five to 10 years.

With strong positions in jet fuels, auto and manufacturing lubricants, and a new venture in sugar cane-based biofuels, BP is finding itself well placed to take advantage of this growing interest.

As I stood at the base of one of the world’s most recognised sculptures, watching a bright sun’s white radiance turn to a soft glow with the approach of dusk, I considered a well-kept secret I learned about Brazil. A country known for its beautiful people (inside and out I must add), the Amazon rainforest, Carnival, World Cup football teams, famous beaches and its Portuguese language is quietly building up its resource muscle and cultivating its business acuity. Brazil is a remote giant that is poised to emerge as a formidable influence in the world.
Atop a mountain named Corcovado in Rio de Janeiro, the massive, awe-inspiring sculpture of Christ the Redeemer stands, arms extended wide, leaving its message open for interpretation, perhaps a religious symbol, maybe a welcome, or embrace of protection. “Look at all that Brazil offers,” it seems to say, “and see a bright future, new growth and fresh opportunities.” BP has certainly seen those opportunities and is busy growing its presence in the South American country, although not, at the moment, in the way one might expect.

Brazil produces hydrocarbons primarily from the Atlantic Ocean in the Campos basin in the southeast – in 2008 it produced around 2 million barrels per day. Many energy companies, including the national oil company Petrobras and BP, have their main offices in Rio, the original gateway to Brazil. An extraordinary place, Rio is a city of millions, where breathtaking beauty and extremes of wealth and poverty are tightly packed between mountains, hillsides and world-renowned beaches – Copacabana and Ipanema. It may soon be famous as an energy centre, too. Recent oil discoveries off the city’s coast have some experts believing vast resources lie beneath a dome of salt and rock.
BP plans to invest between $5 billion and $6 billion in Brazilian ethanol projects over the next five to 10 years.

With strong positions in jet fuels, auto and manufacturing lubricants, and a new venture in sugar cane-based biofuels, BP is finding itself well placed to take advantage of this growing interest.

As I stood at the base of one of the world’s most recognised sculptures, watching a bright sun’s white radiance turn to a soft glow with the approach of dusk, I considered a well-kept secret I learned about Brazil. A country known for its beautiful people (inside and out I must add), the Amazon rainforest, Carnival, World Cup football teams, famous beaches and its Portuguese language is quietly building up its resource muscle and cultivating its business acuity. Brazil is a remote giant that is poised to emerge as a formidable influence in the world.
Atop a mountain named Corcovado in Rio de Janeiro, the massive, awe-inspiring sculpture of Christ the Redeemer stands, arms extended wide, leaving its message open for interpretation, perhaps a religious symbol, maybe a welcome, or embrace of protection. “Look at all that Brazil offers,” it seems to say, “and see a bright future, new growth and fresh opportunities.” BP has certainly seen those opportunities and is busy growing its presence in the South American country, although not, at the moment, in the way one might expect.

Brazil produces hydrocarbons primarily from the Atlantic Ocean in the Campos basin in the southeast – in 2008 it produced around 2 million barrels per day. Many energy companies, including the national oil company Petrobras and BP, have their main offices in Rio, the original gateway to Brazil. An extraordinary place, Rio is a city of millions, where breathtaking beauty and extremes of wealth and poverty are tightly packed between mountains, hillsides and world-renowned beaches – Copacabana and Ipanema. It may soon be famous as an energy centre, too. Recent oil discoveries off the city’s coast have some experts believing vast resources lie beneath a dome of salt and rock.

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18 CLASS ACT
Bringing science to life in schools

28 OCEAN JEWEL
Latest shipping fleet launched

48 TOP MODEL
Predicting the future of climate
ISSUE 1 2009

THE INTERNATIONAL MAGAZINE OF THE BP GROUP

BPMAGAZINE

SWEET HARVEST
38 SPOTLIGHT: BUSINESS IN BRAZIL

With strong positions in jet fuels and lubricants and a growing biofuels business, BP’s Brazilian business is reaping rewards. BP Magazine reports from the South American country.

Welcome. Inspiration is a powerful tool. It can instil great passion in people, and drive them to achieve remarkable things. In many cases, that first taste of inspiration comes from a teacher. In the UK, interest in science at school has declined in recent years, leading to concerns of a skills shortage in industries dependent on those subjects. On page 18, we find out about a BP-supported programme – aptly entitled Project Enthuse – designed to help science teachers reverse that trend, while a look at climate modelling on page 48, advances in seismic technology on page 8 and the innovation behind BP Shipping’s latest fleet featured on page 28 are all perfect examples of how inspired thought helps drive the energy industry. Lisa Davison> Editor

contents / issue 1 2009
+ Features
10 Mega achievement The story behind Azerbaijan’s ‘contract of the century’. By Helen Campbell
Photography by BP Imageshop

18 Enthusiastic approach The education
Photography by National Science Learning Centre

programme designed to help teachers inspire a new generation of scientists. By Hester Thomas

24 Ethical values How BP’s compliance and ethics agenda is meeting the very highest expectations. By Lisa Davison Illustration by Serge Seidlitz 28 Precious cargo The new class of liquefied natural
gas vessels adding a touch of sparkle to the high seas. By Nick Reed Photography by Stuart Conway Cover story

38 Brazilian beauty Interest in Brazil is on the rise with growth in tourism and businesses. BP is poised to tap into that growth thanks to a strong presence in jet fuels, a well-established lubricants business and a new biofuels venture. BP Magazine visits the country to learn more about this sleeping giant. By Paula Kolmar
Photography by Marc Morrison

contributors>

48 All change Climate modelling is an increasingly useful tool in understanding the Earth’s climate and scientists at Princeton are leading the way. By Nina Morgan
Photography by NOAA

52 Looking East A new BP-supported exhibition has begun travelling around the UK giving insight into Chinese history and culture. By Hester Thomas
Photography from the Trustees of the British Museum

NINA MORGAN worked as an exploration geologist for seven years before turning to freelance science writing. She now specialises in writing about all branches of science and technology.

STUART CONWAY’S all time favourite photographic subject was a dazzling male Tufted Coquette hummingbird whilst on assignment in Trinidad.

DAVID LYTTLETON is a freelance illustrator from Newcastle-UnderLyme, Staffordshire. He contributes to many publications,including a weekly Guardian column.

58 Interactive energy How a new BP website aims to help individuals better understand their carbon footprint, while offering tips to reduce it. By Helen Campbell

+ Regulars
04 For the record A snapshot of BP news and statistics
from around the world.

BP MAGAZINE The international magazine of the BP Group – ISSUE 1 2009 BP Magazine is published quarterly for external readers around the world, as well as past and present BP employees. Its contents do not necessarily reflect official company views. The copyright for photographs and illustrations in BP Magazine is not always owned by BP. Please contact BP Photographic Services for details. managing editor Barbara Peen peenb@bp.com editor Lisa Davison lisa.davison@uk.bp.com distribution Carolyn Copland +44 (0) 20 7496 4340 design Phil Steed – Steed Design phil@steeddesign.com www.steeddesign.com print management Williams Lea image contributors BP Imageshop Debut Art iStockphoto Jupiter Images Unlimited

06 The Big Issue The Met Office discusses the
Illustration by David Lyttleton

challenges and opportunities of using climate models.

07 BP Faces BP Australia’s national barista champion makes the perfect coffee. Photography by Bill Bachman 08 Science made simple The technology helping BP ‘see’ through salt. By Nic Welsh. Illustration by Magic Torch 36 Viewpoint Music students gather for a very special
performance. By Lisa Davison Photography by Richard Davies

57 Factfile A look at a few ‘firsts’ from BP Shipping. 62 Archive Revisiting BP’s connections with China through the past century. Photography by BP Archive 66 Parting shot: Freeze frame Capturing an AfroBrazilian artform in full flow.

© BP p.l.c., 2009

  internat ional operat ions
Report> Paula Kolmar Photography> Marc Morrison

Country report> Brazil

Sweet success: sugar cane harvesting occurs twice a year in Brazil in the warm central areas near the equator. The country produces more than 20 billion litres of sugar cane ethanol every year.

38 Issue 1 2009 BP MAGAZINE

BRAZIL THE UNDISCOVERED

COUNTRY

Business and tourism are on the rise in Brazil – a vast country that spans more than half of the South American continent. With strong positions in jet fuels, auto and manufacturing lubricants, and a new venture in sugar cane-based biofuels, BP is finding itself well placed to take advantage of this growing interest.
BP MAGAZINE Issue 1 2009 39

VENEZUELA COLOMBIA

GUYANA SURINAME FRENCH GUIANA

10

NORTH ATLANTIC OCEAN
0

Amazon River

Manaus

Belem

Fortaleza Recife Salvador
10

BRAZIL PERU BOLIVIA BRASILIA

Campo Grande
PARAGUAY

CHILE

São Paulo

Rio de Janeiro

20

ARGENTINA
AREA ENLARGED

Porto Alegre

URUGUAY km
Vast potential: agriculture is big business in Brazil, but cowboys are still the best way to move cattle across the country’s great expanses of dirt roads and trails.

SOUTH ATLANTIC OCEAN
40 30

30

500 1000

50

As I stood at the base of one of the world’s most recognised sculptures, watching a bright sun’s white radiance turn to a soft glow with the approach of dusk, I considered a well-kept secret I learned about Brazil. A country known for its beautiful people (inside and out I must add), the Amazon rainforest, Carnival, World Cup football teams, famous beaches and its Portuguese language is quietly building up its resource muscle and cultivating its business acuity. Brazil is a remote giant that is poised to emerge as a formidable influence in the world.
Atop a mountain named Corcovado in Rio de Janeiro, the massive, awe-inspiring sculpture of Christ the Redeemer stands, arms extended wide, leaving its message open for interpretation, perhaps a religious symbol, maybe a welcome, or embrace of protection. “Look at all that Brazil offers,” it seems to say, “and see a bright future, new growth and fresh opportunities.” BP has certainly seen those opportunities and is busy growing its presence in the South American country, although not, at the moment, in the way one might expect. Brazil produces hydrocarbons primarily from the Atlantic Ocean in the Campos basin in the southeast – in 2008 it produced around 2 million barrels per day. Many energy companies, including the national oil company Petrobras and BP, have their main offices in Rio, the original gateway to Brazil. An extraordinary place, Rio is a city of millions, where » breathtaking beauty and extremes of wealth and

Vital statistics:
Name: Brazil Area: 8,511,965km2 (3,286,488 square miles) Population: 196,342,592 Life expectancy: 71.71 years Capital city: Brasília Climate: mostly tropical, but temperate in the south Language: Portuguese Religion: Roman Catholic (73.6%); Protestant (15.4%) Currency: real Major industries: agriculture, textiles, shoes, chemicals, cement, lumber, iron ore, tin, steel, aircraft, motor vehicles and parts.

40 Issue 1 2009 BP MAGAZINE

Country report> Brazil

Open arms: Rio de Janeiro’s most famous icon, Christ the Redeemer, sits atop Corcovado mountain, arms spread wide to all visitors.

BP MAGAZINE Issue 1 2009 41

History: Brazil is the largest and most influential country in South America, and the only one whose people speak Portuguese. Following 300 years of rule under Portugal, Brazil became independent in 1822 and a republic in 1889. Governance fell under military control until a peaceful transition to civilian administration in 1985. Trade: The discovery of diamonds, gold and other precious metals peaked the interest of Portugal and France in the 16th century. Mining remains one of its key industries. Highly developed agriculture, manufacturing and service sectors support its presence in world markets, with the US as its primary trading partner. Culture: Passionate, warm people characterise Brazil’s population and they are a nation of zealots when it comes to football (soccer). The comfort and pleasure of guests dominate their lifestyle, and visits always begin with the offer of strong coffee in tiny espresso cups, followed by immense generosity with their time and space. Passion for health and beauty is obvious, but Brazilians look for it as much on the inside as on the outside of people.

42 Issue 1 2009 BP MAGAZINE

Country report> Brazil

Favourite spot: at the base of Christ the Redeemer on Corcovado, tourists and locals are treated to the stunning sculpture and a perfect view of Rio and its beaches.

BP MAGAZINE Issue 1 2009 43

Country report> Brazil

New arrival: Air BP is the first new aviation fuelling company to arrive in Brazil in the past 50 years.

NEW HOPE FOR PROSPERITY
Favelas (fah - veh - lahs): shantytowns and slums of Rio de Janeiro and São Paulo; rich in history; the only affordable housing for lower-working-class people; violence is common. Famous and infamous at once, Rio’s favelas number around 1,000. The peculiar urban geography of the city has meant many are placed on hillsides that face the prosperous seaside neighbourhoods and tourist spots. They provide a striking illustration of the dramatic gap between rich and poor. Favelas are a culture within a culture, self-governing, caught in a cycle of poverty from which it is hard to break free. Living conditions have been a major issue in Brazil for at least a century, and many attempts to ‘cure’ the problem have left them in the same spiral at a growing rate. Documentaries, movies, and tours have placed a small spotlight on favelas, but as Brazil advances its global presence, attention is intensifying. Small strides are helping direct people towards the hope of prosperity. Cristina Brunet, community affairs coordinator for all of BP Brazil’s businesses, is getting the company involved with passion and funding. She is a Carioca (native of Rio de Janeiro) to the core and believes passionately in a future for people in the favelas. “Most residents are hard-working and ambitious, grasping for opportunities to improve themselves,” she explains. “Education and training give them the chance to see a better future.” Rio’s Favela da Maré is a community that supports education, art, and tutoring for university entrance exams through a homegrown organisation called CEASM, founded in 1997. We were permitted to visit the school where BP sponsors language courses in English, Spanish and French. Just as extraordinary is the recently opened museum of Maré history and local works of art. One of the CEASM founders explains why he built the museum: “The people like to express themselves through art to tell a story or reflect the place where they live. I wanted to give them a place to exhibit their art and possibly motivate others to take part.”

» poverty are tightly packed between

mountains, hillsides and world-renowned beaches – Copacabana and Ipanema. It may soon be famous as an energy centre, too. Recent oil discoveries off the city’s coast have some experts believing vast resources lie beneath a dome of salt and rock. This news lifted the country and, one could argue, even stimulated economic growth and development, thus leading to more jobs and more money to spend or invest. Along with Russia, India and China, Brazil is recognised as one of four key emerging markets that will drive future global growth and it is this potential that BP is working hard to tap into: specifically in lubricants and aviation fuel.

S

ão Paulo, the most populous city in Brazil, is home to BP’s lubricants business and Air BP offices, and serves as the global development centre for BP’s premiere venture into biofuels, using sugar cane rather than corn. Sampa, as it is commonly called by locals, is a cosmopolitan city with an expanding middle-class economy and evolving smallbusiness sector. Portuguese, the national language, is often the only one travellers encounter outside of their hotels. The southeast region, where Rio and São

Paulo are located, represents close to 80% of the population and 60% of Brazil’s buying power. About an hour’s travel by plane, the two metropolises cover a compact area of southeastern Brazil, one of the five largest countries in the world. From a marketing point of view, the two cities offer convenient exposure to roughly 20 million potential customers in a country where people love and depend on their cars, and take pride in maintaining them with the best products they can afford. That means changing the oil under the hood regularly using high-performance, branded and proven engine oil products. BP Lubricants’ Castrol brand, sold in Brazil since the 1950s, takes the needs of customers very seriously and designs oils with specifications targeting a suite of vehicles, from small flex-fuel cars to large cargo trucks. The Castrol brand also serves Brazil’s growing automotive manufacturing, metalurgy and machinery manufacturing industries. BP Lubricants’ Industrial Lubricants & Services (ILS) division also works closely with the mining industry – Brazil’s iron ore exports generate around $2 billion in annual revenue – and sugar mills. As of 2007, Brazil is the world’s largest producer of » sugar cane.

44 Issue 1 2009 BP MAGAZINE

Brazil> Favelas

“Most residents are hardworking and ambitious, grasping for opportunities to improve themselves.” Cristina Brunet

Hope abounds: in a bid to escape cramped conditions, extreme poverty and violence in the favelas (top), many residents, both young and old, take advantage of local training programmes and schooling. Science is supported in the Favela da Maré school, while photography is taught as a job skill in São Paulo.
BP MAGAZINE Issue 1 2009 45

Country report> Brazil

Castrol lubricants are produced and packaged at a plant on the outskirts of Rio. Demand for the products is high, and output is closely managed by Salim Abi Saab. “Because of this demand, the plant operates flat out. Unscheduled downtime is an unacceptable risk, as are poor safety habits,” Abi Saab explains. “We have a rigorous production schedule and an intricate arrangement for truck arrivals, loading and departures. Safety is managed with a firm hand for employees and shippers alike. It is a key feature in our ability to maintain the customers’ expectations of quality and delivery.” Back in São Paulo, Mauricio Garcia-Ramos and Carlos Cardozo, the heads of automotive and industrial lubricants, recently implemented a new marketing programme that makes efficient use of distributors to increase product sales throughout the sprawling and sparsely populated regions

of Brazil. “After a few months, the positive impact of the programme is evident in the numbers,” says Garcia-Ramos and Cardozo. Air travel within Brazil and from around the world is on the rise. The country’s 67 airports are operated by the government entity Infraero, which is dedicated to meeting the demand and improving flight safety.

T

ourism is a major growth area, with investors opening more resorts and hotels on exquisite beaches and close to areas of hard-to-access natural beauty, which had previously required visitors to stay in small campsites. ‘Build it and they will come’ as the old saying goes, and so it is in Brazil. Air BP, imbued with a passion and process for safety and efficiency, is establishing itself as the aviation fuelling company recognised as having the safest operation in the country,”

says Marcelo Soares, operations manager. The first new aviation fuelling company in Brazil in 50 years, Air BP has brought innovative ideas and proven safety measures for fuelling planes accurately. This is evident in the fact that Brazil’s government is currently assessing Air BP’s safety procedures and is planning on making its ‘no decal no fuel’ policy a law in the country. “Brazil’s jet fuels market has grown 8.1% and 7.7%, respectively in 2007 and 2008. After completing construction of the Rio de Janeiro International Airport terminal and the pipeline to access local fuel supply in May 2008, Air BP Brazil has established a solid foundation for business growth”, says Ricardo Paganini, Air BP Brazil country manager. The safety philosophy and procedures align with the objectives of Infraero: to put in place a safe, efficient fuelling process in

“Safety is managed with a firm hand for employees and shippers alike. It is a key feature in our ability to maintain the customers’ expectations of quality and delivery.” Salim Abi Saab

Safe hands: Castrol has had a presence in Brazil since the 1950s and prides itself on its safety record. Above, the view over Rio de Janeiro is a spectacular sight.

46 Issue 1 2009 BP MAGAZINE

order to prepare for the anticipated increase in air traffic. Tourism is a big part of the growth, but business travel is on the rise as well. Visiting the Brazilian Consulate in Houston, I discover that applications for business visas to Brazil have grown at a remarkable rate over the past 18 months. Whether tourism or business is attracting people to Brazil, the hidden potential is building momentum. Paulo Pinho, head of BP’s biofuels venture in the country, sees the opportunity in Brazil as far-reaching. “Given today’s petroleum price volatility and the global interest in reducing dependency on hydrocarbon fuel, our joint venture, Tropical Bioenergia, gives BP a position in the growing sugar cane ethanol industry in Brazil,” says Pinho. And Brazil is the place for this business, producing around 22 billion litres of sugar cane ethanol per year, according to its

industry organisation UNICA, and continues to show big growth. With two harvests per year, sugar cane is plentiful in Brazil, and studies show that there is enough arable land available to support production of biofuels without having an impact on land for food crops, or sensitive areas such as rainforests. Brazil is far ahead of most countries in providing fossil and biofuels to consumers; 90% of the vehicles are flex-fuel, so the driver can switch fuels whenever the prices change. “Increasing capacity for making sugar cane ethanol, as we plan to do at Tropical, creates more opportunity for exporting to consumers who want the choice.” Discovering Brazil is a trip more and more people and businesses are taking, and the prize is a gold mine of fortune and prosperity from every direction. The undiscovered country is about to burst onto the world’s radar. I

“Given today’s petroleum price volatility and the global interest in reducing dependency on hydrocarbon fuel, our joint venture, Tropical Bioenergia, gives BP a position in the growing sugar cane ethanol industry in Brazil.” Paulo Pinho

Field to fuel: farming sugar cane is paying off in a big way as the world takes a close look at Brazil’s sugar cane ethanol industry.

BP MAGAZINE Issue 1 2009 47

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