BP plans to double its investment in alternative and renewable energies, creating a new low-carbon power business.
Building on the success of BP Solar – which expects to hit revenues of $1 billion in 2008 – BP Alternative Energy will manage an investment programme in solar, wind, hydrogen and combined-cycle-gas-turbine (CCGT) power generation, which could amount to $8 billion over the next ten years.
The first phase of investment would total some $1.8 billion over the next three years, spread in broadly equal proportions between solar, wind, hydrogen and CCGT power generation.
BP currently has 10% of the global market share for photovoltaic systems – a market which is growing at 30% a year, faster than any other form of renewable energy.
BP also has more than 100MW of solar manufacturing capacity in the
Investment in hydrogen fuels will include the world’s first commercial project – at Peterhead, in
The hydrogen will be used at a power station in Peterhead to generate 350MW of ‘clean’ electricity, and the carbon dioxide re-injected into the offshore Miller field. BP is looking at a similar sequestration scheme to make hydrogen from low-value coke by-products at a
On the wind front, the company currently runs two wind farms alongside existing oil plants in the
Projected investment in CCGT will be spent mainly in the
BP Alternative Energy will be based in Sunbury, Middlesex and initially employ some 2,500 people around the world.