Published by Todd Bush on February 28, 2025
BP has announced a significant reduction in its energy transition budget but will continue to selectively invest in hydrogen as part of a broader refocus on fossil fuels.
Despite scaling back on renewables, BP is pushing forward with key hydrogen projects, indicating a strategic focus on specific low-carbon initiatives.
BP, the London-based oil giant, has unveiled a strategy "reset" that involves a dramatic reduction in its annual spending on energy transition efforts, cutting capital expenditure in its "transition businesses" by more than 70%. This reduction lowers the budget to $1.5 billion to $2 billion from a previous $5 billion. Despite these cuts, BP plans to maintain a focused investment in hydrogen and carbon capture technologies, signaling a continued commitment to these areas amidst a broader pivot back towards fossil fuels.
>> In Other News: Bison Low-Carbon Ventures Inc. Receives AER D065 Approval for the Meadowbrook Carbon Storage Hub
The decision reflects a strategic shift within BP as it aims to balance growth with sustainability. The company still intends to achieve net-zero emissions from all its products by 2050, a goal that remains part of its long-term strategy. This includes ongoing projects like the 100MW Lingen green hydrogen plant in Germany, which received a final investment decision last December and is set to supply BP's refining processes upon completion. Additionally, plans are underway for a 1.2GW blue hydrogen project in northeast England, incorporating carbon capture and storage to reduce environmental impact.
This move by BP comes at a time when other energy giants, such as Shell and Equinor, are also reevaluating their investment strategies in response to financial pressures and investor concerns over profitability. BP's strategy adjustment is a response to various global challenges, including economic shifts and changing market and governmental attitudes towards the energy transition, which were significantly influenced by events like the COVID-19 pandemic, the war in Ukraine, and economic recessions.
BP CEO Murray Auchincloss emphasized the strategic necessity of this reset during an investor meeting in London, stating, "In 2020 we made some bold strategic changes, accelerating into the energy transition while progressively reducing our hydrocarbon business. However, our optimism for a fast [energy] transition was misplaced, and we went too far, too fast." He added that the revised strategy is about "reducing and reallocating capital expenditure to our highest-returning businesses to drive growth, and relentlessly pursuing performance improvements and cost efficiency," all aimed at sustainably growing cash flow and returns.
Despite the significant cuts in overall green energy funding, BP’s ongoing investment in hydrogen suggests a strategic alignment with long-term energy trends, where hydrogen is seen as a pivotal element in the future energy landscape. This approach aligns with the industry's broader pivot towards more selective investments in sustainable technologies that promise higher returns and align with global energy transition goals.
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.
Inside This Issue 🗑️ The Next Big Thing in Carbon Capture? Trash. ⚡ Hydrogen Hope on the Chopping Block: How ARCHES and Other Blue-State Projects Got Caught in the Crossfire 📊 GEP Expands Carbon D...
Inside This Issue 🔧 America Bets Big on Blue Hydrogen: Inside the Engine Revolution Backed by Top Institutions 🤖 Bringing AI to Carbon Capture: How Imperial College is Revolutionising Plant Operat...
Inside This Issue 💰 Shell, Equinor, Totalenergies to Invest $714 Million in Carbon Storage Expansion 🚢 AiPs Obtained for Liquefied CO₂ Carrier Design and Floating Liquefied Storage Facility 🌱 Stoc...
New CTO Helin Cox to Propel Climeworks’ Carbon Removal Tech to the Next Level
Zürich April 1st, 2025 – Helin Cox, an experienced engineer with a track record of successfully scaling critical climate technologies, joins Climeworks as Chief Technology Officer, effective immedi...
New Technology Leverages Renewable Energy Solutions and Advances Conagra's Climate Change Goals CHICAGO, April 1, 2025 /PRNewswire/ -- Conagra Brands, Inc. (NYSE: CAG) and Bloom Energy (NYSE: BE),...
Vitry-le-François, France – April 2, 2025, 08:00 am (CET) – Haffner Energy (ISIN: FR0014007ND6 – Ticker: ALHAF) (the "Company") announces the success of its €6,995,496M cash Capital Increase with p...
The Texas Railroad Commission permits provide for 12 salt caverns capable of storing natural gas, hydrogen, natural gas liquids and other products at TRU Hub, which is located in Southeast Texas in...
Follow the money flow of climate, technology, and energy investments to uncover new opportunities and jobs.