Over time, as investment goes up in low and no carbon, we see it going down in oil and gas.
We’ve already started the switch towards clean energies. We made low carbon investments totalling $750 million in 2020 and more than $500 million in 2019, with new projects agreed coming onstream.
We’ll focus our low carbon investment on::
We’ve been building our bp wind energy business for more than 10 years and it now has a potential gross capacity of 9.1GW.
In January 2021 we completed formation of a strategic US offshore wind partnership with Equinor to pursue offshore opportunities in the US, including the purchase of 50% in the Empire Wind and Beacon Wind projects.
In February 2021, bp and German utilities partner EnBW were awarded preferred bidder status on two highly advantaged leases in the UK. The leases, both located in the Irish Sea, offer a combined potential generating capacity of 3GW, the maximum award possible under the rules of the round, and a 60-year lease life. Once operational, this generating capacity would be sufficient to power more than 3.4 million UK households with clean electricity.
Lightsource bp, in which we hold a 50% interest, is a global leader in the development and management of solar energy projects. The business has maintained its growth throughout 2020, developing 1.4GW gross to final investment decision. It also added around 6GW gross to its strong pipeline of 17GW new business and is investing in leading-edge technology to meet its customers’ needs, including bi-facial panels and advanced tracking systems.
Our bioenergy joint venture in Brazil, bp bunge bioenergia, has continued its integration processes throughout 2020, despite the impact of the COVID-19 pandemic. All of its operated sites are now certified by RenovaBio and can emit and trade decarbonization credits known as CBIOs.
In 2020, bp bunge bioenergia had an annual crushing capacity of 28 million tonnes and exported 1,232 GWh to the Brazilian grid.
bp also has produces biogas and is already one of the largest suppliers of renewable natural gas into the US transportation sector through our JV with Aria Energy. We’re also of the leading sustainable aviation fuel marketers, and at the end of 2020, we had supplied 18 airports in six countries.
In 2021 we announced our strategic partnership with Qantas to jointly explore opportunities to reduce carbon emissions in the aviation sector, including the potential use of advanced sustainable fuels.
In the UK bp is playing a lead role in the Net Zero Teesside (NZT) and Northern Endurance Partnership (NEP) projects. These projects aim to deliver the UK’s first gas-fired power station with CCUS, and decarbonize a range of carbon-intensive businesses across Teesside, creating what would be the UK’s first net zero industrial cluster.
The creation of NEP in 2020 saw us join forces with five other energy companies – Eni, Equinor, National Grid, Shell and Total – to develop shared offshore CCUS infrastructure in the UK North Sea, which will serve both NZT, and Zero Carbon Humber (ZCH), which is a consortium of leading energy and industrial companies and academic institutions working to create a net zero cluster in the Humber region.
If successful, NEP, NZT and ZCH would help to decarbonize nearly 50% of the UK’s industrial cluster emissions.
Hydrogen can play a key role in decarbonizing power, industry and heavy goods vehicle transport. It complements our existing businesses and capabilities. We are exploring the production of both green hydrogen (electrolysis of water using renewable power) and blue hydrogen (extracted from natural gas and the CO2 is captured and stored), with blue hydrogen production enabled by the scale-up of carbon capture use and storage (CCUS).
We’ve signed a Letter of Intent with Ørsted at Lingen refinery to explore the potential of building a green hydrogen facility and in 2020 we announced a feasibility study in Australia with ARENA (Australian Renewable Energy Agency) to explore the use of solar energy to power the production of green hydrogen, which in turn could be used to create green ammonia for a clean energy carrier, targeted at domestic and export markets.
The new partnership will develop up to 4.4GW through two projects – Empire Wind and Beacon Wind – and together pursue further growth in the US offshore wind market
We believe that well-designed carbon pricing provides the right incentives for everyone – energy producers and consumers alike – to play their part in reducing emissions
bp has announced that it is developing plans for the UK’s largest blue hydrogen production facility, targeting 1GW of hydrogen production by 2030