Following the announcement of profits at an eight-year high, BP has said that by the year 2025, 40% of its total spending will go into projects that form part of the energy transition, with this increasing to 50% by 2030.
There will be a particular focus on the UK, with the firm promising to invest twice as much in the UK as it makes here over the decade. This will include setting up retail infrastructure, such as charging networks for electric vehicles, and energy generation projects like hydrogen production and massive offshore windfarms.
In a statement, the Chief Executive of BP, Bernard Looney, said the company has a strong foundation in the UK given its historic roots, although he added that:
“The real reason we will focus on the UK is the opportunity: the wind resources here are among the best in the world. The UK is also blessed with a society and an economy which wants to transition. It’s a good place to invest and it’s a place that we know.”
BP, which also makes Castrol lubricants like agricultural oil, has its roots in the oil and gas industry. Since 2016, it is estimated to have spent $84bn in exploring and developing oil and gas assets, compared to $3.2bn on renewable energy, so a target of 40% of spending represents a fundamental shift.
The company has already entered the offshore wind sector, with its development pipeline for renewable energy growing from 6 GW in 2019 to 24.5 GW in just two years.