PO Box 1146
Salida, CO USA  81201
(719) 539-0300
Fax: (719) 539-0301


BBI International... Your Biofuels Resource


Event Calendar

World Biofuels Symposium
November 13-15, 2005
Beijing, China

2nd Annual Canadian Renewable Fuels Summit
December 13-15, 2005
Toronto, Ontario, Canada
Hosted by:
Candadian Renewable Fuels Association

National Biodiesel Conference & Expo 2006
February 5-8, 200
San Diego, California
National Biodiesel Board

11th Annual National Ethanol Conference: "Policy & Marketing"
February 20-22, 200
Las Vegas, Nevada, USA
Sponsored by:
Renewable Fuels Association

22nd Annual International Fuel Ethanol Workshop & Expo
June 20-23, 200
Milwaukee, Wisconsin, USA

Join our
Email Subscription List

Select your topics of interest for regular and timely updates - control your subscriptions and unsubscribe anytime

Complete Listing of Upcoming Events

Event History

Free Booklet Download:
Fuel Ethanol: A Technological Evolution



Posted on  

May 3, 2002

BP advances switch to ethanol in California gasoline

BP, the largest gasoline supplier in California, said on Thursday it will switch federally mandated fuel additives in the largest U.S. gasoline market in a move industry experts have said could tighten supplies and hike pump prices.
BP said it would phase out cleaner-burning fuel additive MTBE (methyl tertiary butyl ether) in California gasoline by Dec. 31 and has begun to sign contracts with several suppliers of the alternative gasoline additive, ethanol.

Calif. Gov. Gray Davis banned MTBE in 1999 amid mounting evidence that the chemical contaminated groundwater supplies. In March, however, Davis postponed his original deadline for MTBE's phaseout by one year to Dec. 31, 2003, citing fears of supply shortages and sharp price spikes reminiscent of last year's electricity crisis.

BP's announcement comes a day after a report in the U.S. Senate. The report cited the company as one of several oil firms under investigation for deliberately withholding supply to profit from higher retail prices, particularly in key markets such as California and Michigan.

Federal clean air laws require the use of either ethanol or MTBE as an oxygen-enhancing agent to help gasoline burn cleaner in a third of the U.S.'s gasoline supply. "We considered all of the factors within our control and determined that we could transition from MTBE to ethanol early," said Bob Malone, BP's regional president.

Agricultural giant Archer Daniels Midland, the largest producer of ethanol, pushed for other refiners to follow BP's move. "We hope other refiners move sooner rather than later to replace MTBE with ethanol, despite the one-year extension of the ban. There are strong environmental and economic reasons for refiners to go ahead and make that move," said Larry Cunningham, the company's senior vice president of corporate affairs.

However, MTBE producers criticized BP's move as financially motivated and noted studies commissioned by the California Energy Commission that pointed to a 5 percent to 10 percent shortfall in the state's ultra-clean gasoline supply if Davis had stuck with his original 2002 deadline.

"This shift to ethanol by BP is an outrageously transparent move designed to raise gas prices in California by tightening gasoline supplies," said Ryan Knoll, spokesman for Lyondell Chemical Company, the world's largest producer of MTBE.



Other News

Click here to see previously posted News items in our Archive

BBI Store

BBI International
Project Development

Multi Client Study:

More information and contents

BBI Online Store


Biodiesel Industry Directory Online:
View it FREE!


Home | Company Info | International Fuel Ethanol Workshop & Trade Show | Biofuels Recruiting | BBI Media

Biofuels Project Development - Biofuels Conference & Event Planning - BBI Media - Biofuels Recruiting

All logos and trademarks in this site are property of their respective owner.
Remainder of content Copyright © 2005 BBI International.