BP Will Dump MTBE for Ethanol

May 3, 2002

Major international energy provider BP will switch from MTBE to ethanol in California during the fourth quarter of this year. BP is the state's largest gasoline marketer.

"BP's announcement today reaffirms their status as an environmental leader, and is welcome news for consumers anxious about further MTBE water contamination," said Bob Dinneen, president of the Renewable Fuels Association (RFA). "I commend BP for making this courageous decision. It reflects BP's commitment to eliminating the use of MTBE as soon as possible. I believe California consumers will reward oil companies like BP that make an early switch away from MTBE. And I hope other companies marketing gasoline in California will follow BP's lead. There is simply no reason for any California oil company to risk further drinking water supplies by continuing to use MTBE."

Despite statements from every California refiner that they were prepared to switch to ethanol, in March California Gov. Gray Davis delayed the state's MTBE ban by one year, until Jan. 1, 2004. After his announcement, several California refiners expressed a desire to proceed with the removal of MTBE by the original deadline. However, BP's announcement is the first public commitment by a refiner to eliminate the use of MTBE as originally scheduled.