This week, bp turned up the dial on its net zero ambition with a trio of low carbon energy investments in two of the world’s fast-growing renewable energy markets.
In China, bp has signed a memorandum of understanding (MOU) with one of the country’s leading solar project developers, JinkoPower Technology, to provide integrated decarbonized energy solutions and services to customers.
JinkoPower is one of the largest private solar project developers in China, which aims to reach 50% of power generation from non-fossil fuels by 2030.
The agreement targets building an integrated energy solution business by bringing renewable power and Energy-as-a-Service digital tools to commercial and industrial customers in China. It brings together the skills and experience of both partners in solar development, distributed energy resources (DER) and digital technology.
Simon Yang, bp China president
In further support of the growing demand for low carbon energy in China, bp has signed a gas supply agreement with leading Chinese energy company, ENN, to supply pipeline gas re-gasified from liquefied natural gas (LNG) for two years from 1 January 2021.
The LNG will be received and re-gasified through the Guangdong Dapeng LNG Company Limited (GDLNG) terminal, in which bp holds a 30% stake. This will make bp the first international energy company to re-gasify LNG through a Chinese terminal and also directly supply gas to customers.
Yang added: “As China progresses the coal-to-gas switch and advances the energy transition, bp is committed to being a trusted and valued partner, bringing smart and low carbon solutions to contribute to a net zero future.”
Meanwhile, in India, bp has announced its intention to invest $70 million in the Green Growth Equity Fund (GGEF) to support growth of zero carbon and low carbon energy solutions in the country. The GGEF is managed by EverSource Capital, a joint venture between Lightsource bp and Everstone Capital, and has invested in businesses like Ayana Renewable Power, Radiance Renewables, GreenCell Mobility and EverEnviro.
Upon investment in the Mumbai-based fund later this year, bp will become a limited partner in GGEF and have representation on its advisory committee, as well as the rights to co-invest in projects.
The investment provides a unique platform for bp to accelerate its ambition in India and to co-invest in a variety of zero and low carbon energy solutions in the country.
Dev Sanyal, executive vice president of bp gas and low carbon energy
Also in India, bp and Reliance Industries Limited (RIL) have announced the start of their new Indian fuels and mobility joint venture, Reliance BP Mobility Limited (RBML). Following initial agreements in 2019, bp has paid RIL $1 billion for a 49% stake in the joint venture, with RIL holding 51%.
Operating under the ‘Jio-bp’ brand, the joint venture aims to become a leading player in India’s fuels and mobility markets by expanding its fuel retailing network from about 1,400 sites to up to 5,500 over the next five years, and growing its service station staff from 20,000 to 80,000.
bp and RIL expect the venture to grow rapidly to help meet India’s energy and mobility needs over the next 20 years, when:
Commenting on the partnership Mukesh Ambani, chairman and managing director of Reliance Industries Limited, said: “RBML will aim to be a leader in mobility and low carbon solutions, bringing cleaner and affordable options for Indian consumers with digital and technology being our key enablers.”