|Low carbon energy||Gas|
In low carbon energy we plan to build capability and scale with capital discipline and a returns focus. Supported by our plans to increase capital expenditure, our low carbon growth strategy spans three focus areas and our new disclosures will help track progress towards our strategic objectives.
Driven largely by solar and offshore wind we target 20GW (bp net) of renewable capacity developed to FID by 2025 with an aim of 50GW by 2030, with average returns of at least 8-10%.
Our quarterly disclosures will track progress toward delivery of this volume target and provide transparency of returns relative to our hurdle rate.
Our pipeline will define the portfolio of projects actively progressed by bp or our partners. And our project hopper will define the scale of initial stage options that we are assessing. As we mature opportunities we will focus on value over volume.
We intend to double our bioenergy production in the five years to 2025, reaching output of 50kb/d net to bp.
Reflecting our established bioenergy business this production metric includes equivalent ethanol production, bp bunge bioenergia power co-generation for grid export, biogas and refining co-processing2 and standalone hydrogenated vegetable oil.
We plan to build positions in green and blue hydrogen with the intention of capturing a 10% share of clean hydrogen in core markets by 2030.
We have already established a platform for growth through our involvement in the Net Zero Teesside CCUS consortium and the renewable hydrogen project at the Lingen refinery in Germany. Given the early stage of this market and our business we will not be providing specific performance metrics in the near term but, as with the rest of our low carbon portfolio, we will evolve the operational and financial disclosures consistent with the maturity of the business.
We will present the results of our gas businesses as part of the gas & low carbon energy segment, enabling a greater focus on the integration of our gas value chains with our low carbon business. This will include potential to integrate with gas downstream markets and partner with renewables to provide cleaner, firm and affordable energy to customers as well as develop opportunities for integration with hydrogen value chains.
Our gas businesses comprise:
Our strategic approach and operating model for our hydrocarbons business is explained in the oil production & operations page.
The map below shows the regions reported in gas.
We will report operational and financial performance consistent with our former combined oil and gas disclosures.
In addition to segment financial disclosures, key disclosures include:
And to provide transparency of the performance of our combined hydrocarbon operating model, we will continue to report certain measures on an aggregate basis.
Disclosures which relate to our combined oil and gas operations:
In addition, to support modelling of this business, we plan to provide guidance at both a segment and aggregate level (including oil), showing:
The gas marketing & trading business within our trading and shipping organisation works to ensure an integrated approach to bp’s gas and LNG portfolio, structure integrated solutions for our customers and manage associated risks.
The integrated gas & power business has been established to create new markets and premium shorts by extending our presence along and across gas and power value chains by participating in gas and power infrastructure , building access to customers in high growth downstream markets and growing commercial and industrial offers.
Our objectives in these areas are summarised by two key targets:
We will provide an annual update on our progress toward both of these targets.
Handbook containing information on our new disclosures
Gas & low carbon energy integrates our existing natural gas capabilities with significant growth in low and zero carbon businesses and markets
As we reinvent bp for a lower carbon future, we remain committed to delivering for the millions of people who depend on us