BP
PLANS to invest $8 billion (£4.6
billion) in wind, solar and
hydrogen power over the next
decade in a drive for more
renewable energy.
The push for green power,
announced just before the launch
today by the British Government
of its energy review, will renew
the oil company’s green
credentials by doubling spending
over three years to $1.8
billion, with a major focus on
wind power.
The investment plans are
revealed at a sensitive time for
the British oil industry, with
energy companies accused of
manipulating the natural gas
market and expectations that the
Chancellor will announce plans
next week for increased taxes on
North Sea oil companies.
Lord Browne of Madingley,
BP’s chief executive, said
yesterday that he supported a
request from Ofgem, the energy
markets regulator, that the
European Commission investigate
market distortions in the supply
of gas to the UK.
In response to a question
about the low level of imports
from mainland Europe to the UK,
Lord Browne said: “We are not a
player in those markets. All I
can say is they are somewhat
opaque.”
Vivienne Cox, BP’s head of
gas and trading, attributed the
company’s low level of imports
of liquefied natural gas (LNG)
into the new Isle of Grain
terminal to scarce supplies: “We
are not holding back gas. There
is a worldwide shortage. LNG is
like any other product. It goes
to the places where prices are
highest.”
A new business unit, BP
Alternative Energy, will recruit
several hundred staff and invest
in solar cells, carbon
sequestration projects, wind
power in America and
combined-cycle gas turbine power
generators.
BP, which famously
rebranded itself “Beyond
Petroleum” in 2000, has lagged
behind some others in the oil
industry in spending on
renewable energy. The new
commitment of $1.8 billion will
raise a political challenge to
Shell, its rival, which has also
promoted green energy and
invested $1.5 billion in
renewables, including a big push
into wind power in Britain.
BP’s focus has been in
solar energy and yesterday it
said that the solar business had
generated a profit for the first
time.
Ms Cox, who will run BP
Alternative Energy, said that
solar manufacturing capacity
would double with a view to
tripling sales. A major focus
will be the creation of a
portfolio of wind turbines in
America generating 200 megawatts
by 2007. BP will concentrate
investment on industrial sites
inherited from Atlantic
Richfield, the California-based
oil company that it acquired in
1999. Ms Cox said, however, that
renewables were still
“policy-dependent”, meaning that
a level of government subsidy
was necessary.
