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BP is providing more info this week about its decades-long plan to diversify away from its dominant fossil fuel business — including expectations for the first few years.
Why it matters: European-based global oil giants are all vowing some kind of decades-long pivot toward more climate-friendly products and deep emissions cuts.
- So the specifics of BP's effort and their ability to make good on their splashy climate pledges will be closely watched.
Driving the news, via Bloomberg: BP's plan will "start with a five-year sprint to dramatically boost wind and solar power."
- "By 2025, the company intends to have approved more than 20 gigawatts of renewable energy projects, an eightfold increase from 2019, Dev Sanyal, BP’s executive vice president of gas and low-carbon energy, said in an online presentation on Tuesday."
How it works: Their piece and this Greentech Media story note BP sees returns of 8%–10% on renewables projects, far above the typical amount.
- Per Greentech, BP CEO Bernard Looney sees four reasons why they can push up returns.
- "Those factors are BP's projects and operations experience, its power trading capabilities, its ability to eke out better operational efficiency, and its financing capabilities," they report.