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BP Aims to Build 20 GW of Renewable Capacity by 2025 and 50 GW by 2030

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bp reports its full year results for 2021 and also given an update on its strategic transformation, including accelerating its net zero ambition.

bp sees both renewables and hydrogen as transition growth engines. With its renewables pipeline and 4.4GW developed to FID at end-2021, it is on track for its target of having developed 20GW renewable power capacity by 2025 and its aim for 50GW by 2030. bp remains confident of achieving 8-10% levered returns for these investments.

The strong progress bp has made over the past few years has reinforced its confidence in the delivery of its earnings and returns targets for 2025. In addition, it is now aiming to continue to grow EBITDA through to 2030.

bp now aims to reduce operational emissions by 50% by 2030, compared with an aim of 30-35% previously, on the way to net zero by 2050 or sooner.

bp is now also aiming for net zero lifecycle emissions from the energy products it sells by 2050 or sooner – a significant advance from the previous aim of a 50% reduction in their emissions intensity. Additionally, the aim’s scope is expanding to include physically traded sales of energy products. For 2030 bp is aiming for a 15-20% reduction in the lifecycle carbon intensity of these products.

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bp is aiming to sustain earnings (EBITDA) from resilient hydrocarbons out to 20301, despite focusing its oil and gas production and refining throughput.

bp also expects to increase the proportion of its capital expenditure in transition growth businesses to more than 40% by 2025 and is aiming for around 50% by 2030. It aims to generate earnings of $9-10 billion from these businesses by 20302, driven by five transition growth engines – bioenergy, convenience, electric vehicle (EV) charging, renewables and hydrogen.

In convenience & mobility, through the strength of its customer offer, bp has grown its margin share from convenience and electrification from 25% to 29% since 2019. Over the same period bp has already almost doubled its EV charging points to more than 13,000 worldwide.

bp remains on track with its aim to double 2019 earnings from convenience & mobility to $9-10 billion in 2030, with both convenience and EV charging as transition growth engines.

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bp has 2,150 strategic convenience sites worldwide and has now increased its aim for 2030 to around 3,500. bp has also increased its aim for charging points to more than 100,000 by 2030. With a focus on fast and on-the-go charging – almost half bp’s current network is fast or ultra-fast – and on fleets, bp is aiming to increase the energy sold across its EV charging networks 100-fold from 2019 to 2030.

In low carbon energy, bp has quadrupled its renewables development pipeline since the end of 2019, from 6GW to 24.5GW. This includes its entry into offshore wind, now with a pipeline of 5.2GW net, including its recent success in the ScotWind leasing round.

With disciplined annual capital expenditure in low carbon energy planned to grow to $3-5 billion by 2025 and $4-6 billion by 2030, bp is aiming for EBITDA of $2-3 billion by 2030.

In hydrogen, bp has built a significant portfolio of options in advantaged markets worldwide with potential capacity of 0.7-1.3 million tonnes a year. These also enable additional value creation through integration with renewables and CCS.

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