Steven E. Koonin

1
Innovating clean technologies at BP

• Steven E. Koonin
• Chief Scientist, BP plc
• Clean Tech Investor Summit, Palm Springs
• February 6-7, 2008

2
US energy supply since 1850
Source EIA
3
distinguishing aspects of energy technologies

• Scale
• Large infrastructure, amounts of material,
  numbers of units
• Requires large capital, leverage of existing
  infrastructure
• Longevity
• Lifetimes of large equipment and/or
  interoperability imply slow changes
• Ubiquity
• There are many players with sometimes divergent
  interests
• Consumers, suppliers, governments, NGOs,
• Incumbency
• New energy technologies must compete on cost
• May not provide any qualitatively new service to
  the end-user

4
evaluating energy technology options

• Materiality
• Current technology status and plausible technical
  headroom
• Budgets for the three Es
• Economic (cost relative to other options)
• Energy (output how many times greater than input)
• Emissions (pollution and CO2 operations and
  capital)
• Other costs - reliability, intermittency etc.
• Social and political acceptability
• Two BP examples
• 1) Hydrogen Power
• 2) Energy Biosciences

5
electricity generation shares by fuel - 2004
Source IEA WEO 2006
6
Hydrogen Power Project California
7
Rationale for Hydrogen Power

• Power demand will grow strongly (and
  disproportionately)
• Absent emissions controls, coal will continue to
  be the dominant source of power for some time
• Abundant reserves, cheap, easy to use, co-located
  with demand
• Coal is the most emissions-laden of the fossil
  fuels
• GHG emissions will be priced in the future
• We can reconcile these two through hydrogen power
• Nuclear a competitor on cost and scale
• BP has established a Hydrogen Energy business

8
The challenges of Hydrogen Power

• Integration and demonstration of above-ground kit
  at scale
• Integrity of underground storage on a millenial
  scale
• Depleted reservoirs (with EOR)
• Saline aquifers
• Cost reduction through optimization, scale
• Membranes
• Legal issues
• Monitoring criteria, liability
• Public acceptance
• Storage
• Pipelines

9
Its really hard to beat liquid hydrocarbons
Density 1 gm/cm3
10
optimizing biofuels requires fusing the petroleum
and agricultural value chains

• Cellulose (bugs/ enzymes/ chems)
• Microbial engineering
• Plant integration / optimization
• Co-products
• Role of gasification

• Tillage
• Planting
• Fertilizer
• Water
• Pest control
• Crop rotation
• Sustainability

• Blends
• Additives
• Distribution
• Engine mods

• Species
• Yield / Morphology / Development
• Chemistry
• Unnatural products
• Stress tolerance
• / Bio-overhead
• Safety

• Optimal catchment
• In-field processing (e.g., pelletizing)
• Transport energetics
• Storage
• Waste utilization

11
the rationale for Energy Biosciences is simple
and compelling

• Biology is the most rapidly developing of the
  sciences
• Novel technologies emerge from rapidly developing
  science
• Biology will generate disruptive technologies
• 90 of the worlds primary energy is based upon
  carbon
• All of life is based upon carbon (and 3.5 billion
  years of evolution)
• There are likely to be great synergies
• Major funding and applications of biotech are
  biomedical
• There have been far smaller investments in
  agriculture, materials, chemicals
• Energy bioscience is largely open territory
• Biofuels, enhanced oil recovery, conversion,
  sequestration

12
BP Energy Biosciences Institute to pursue these
opportunities

• Dedicated research organization to explore
  application of biology and biotechnology to
  energy issues
• Sited at a University of California Berkeley,
  University of Illinois Urbana-Champagne, and
  Lawrence Berkeley National Laboratory
• Open basic and proprietary applied research
• Initial focus on the entire biofuels production
  chain
• Smaller programmes in Oil Recovery, hydrocarbon
  conversion, carbon sequestration
• Involvement of BP, academia, biotechnology firms,
  government
• 500M, 10-year commitment operations began
  November, 2007

13
Questions/Comments/Discussion
Energy Trends and Technologies Video at
http//clients.mediaondemand.net/BP/