- Mergers & Acquisitions
bp acquires stake in UK HVO producer Green Biofuels
bp has acquired a 30% stake in Green Biofuels Ltd (GBF), the UK’s largest provider of hydrogenated vegetable oil (HVO). Green Biofuels produces HVO from renewable feedstocks such as vegetable oils, animal oils and fat. Their product range includes HVO Gd+, a low emission advanced HVO fuel that can be used as a direct drop-in replacement for diesel fuel.
bp’s investment will support GBF’s growth as it works with businesses looking to transition away from using traditional diesel fuel in their assets, such as transport vehicles, temporary generators and construction machinery. The investment inGreen Biofuels will expand bp’s global biofuels portfolio and its lower carbon solutions for UK customers, in line with its strategic aim of growing its bioenergy businesses as it transitions to become an integrated energy company.
Founded in 2013, Green Biofuels is the UK’s largest provider of HVO, having delivered over 55 million litres of HVO products to the UK market over the past two years. HVO Gd+, which includes GBF’s additives, can be used in diesel engines without the need for modifications or capital expenditure. HVOs have the potential to play an important part in supporting life cycle emission reductions in many sectors, providing a commercially viable decarbonization option for fleet owners, construction companies and vessel operators as HVOs are a drop-in replacement fuel.
“We are delighted to be working with Green Biofuels, who are at the forefront of HVO supply in the UK market, providing their customers with solutions to help them take steps to decarbonize today. We look forward to supporting their continuing growth and working together on these immediately available alternatives. This investment further expands our biofuels portfolio, as we transition to become an integrated energy company,” says Sven Boss-Walker, bp’s SVP refining & products trading.
By using HVO fuels, operators of diesel engines typically save lifecycle greenhouse gas emissions by 87% and additionally improve local air quality. In-field and controlled environment independent tests have shown that compared to standard diesel emissions, HVO Gd+, which is often made from waste products, achieves up to 85% reductions of particulates and up to 30% reductions of nitrogen oxides emissions, according to bp.
“Our mission is to support the net zero energy transition by providing an immediate solution that makes a difference to carbon and air pollution emissions today. Our fuels provide businesses the time to transition to new technologies when they are proven both economically and operationally. We are proud to be partnering with a company like bp, which recognises the urgency of making positive changes now,” says William Tebbit, CEO of Green Biofuels.
In December 2021 bp announced it had taken a stake in Gasrec – the UK’s largest dual provider of bio-liquified natural gas (LNG) and bio-compressed natural gas (CNG) to the heavy goods vehicles industry.
The latest investment is another example of bp’s aim to help decarbonize hard-to-abate sectors.