BP focuses on profitability rather than green energy

BP is slowing its energy transition by reducing its planned spending on renewable energy by up to $5 billion by 2030.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

BP is reviewing its strategy to focus on renewable energy, but from a different perspective, focused on low-cost renewable energy production to power its electric vehicle charging network and low-carbon fuel manufacturing. The main objective is to secure a cost-effective energy supply, rather than to own renewable energy assets. Energy transition experts see hydrogen as a key fuel of the future, and BP aims to retain 80 percent of the electricity produced to power the global electric vehicle grid and make “green” fuels.

An overhaul of BP’s renewable energy strategy

The company will seek to retain the majority of renewable energy to power its electric vehicle charging network, but also to produce low-carbon fuels. The green stakes are high, given that solar power alone accounts for more than half of BP’s 43-gigawatt renewable energy project pipeline.

Anja-Isabel Dotzenrath, BP’s head of renewable energy and gas, said the strategy is not necessarily about owning renewable energy assets, but rather about ensuring access to affordable green energy. She also said BP would continue to build some projects under traditional power supply agreements.

BP’s goal is to ensure energy security while reducing costs. BP’s decision to produce more oil and gas than expected was a surprise to many observers, given that the company had announced a radical plan three years ago to move away from fossil fuels. Last month, BP slowed that plan, but did not abandon renewables.

BP slows down its energy transition

The most striking change in the strategy update was that BP reduced its planned annual spending on renewables to $5 billion by 2030, out of a total group budget of up to $18 billion, down from $6 billion out of $16 billion in its previous update in 2022. However, the company remains committed to achieving its goal of net zero emissions by 2050.

Venture with Equinor

As part of its strategy to reduce oil and gas production, BP also announced a collaboration with Equinor to develop offshore wind projects in the South China Sea and Irish Sea. The joint venture, called Empire Wind, aims to develop 4-gigawatt projects in the New York area and a 1.2-gigawatt project off the North Carolina coast.

However, this collaboration was met with skepticism by some observers, who pointed out that the South China Sea project was located in a region claimed by China, where tensions are already high. There are also concerns about worker safety and environmental protection in the area.

In response, BP said it has been working with Chinese partners to ensure that the project meets the highest environmental and safety standards. However, critics point out that BP does not have the best track record on environmental safety, with accidents such as the Deepwater Horizon oil spill in the Gulf of Mexico in 2010, which killed 11 workers and caused extensive environmental damage.

A strategy focused on profitability rather than green energy

BP’s strategy may seem contradictory at first glance: on the one hand, the company is investing heavily in renewable energy and working with partners to develop offshore wind projects. On the other hand, it reduces planned spending on these projects and slows down reductions in oil and gas production.

However, this strategy is based on profitability rather than a commitment to the energy transition. BP’s primary focus is on maximizing profits and securing access to cheap green electricity, rather than becoming a leader in green energy.

This strategy is underscored by the words of Anja-Isabel Dotzenrath, who says, “Our strategy is not necessarily about owning renewable energy assets, but it does follow from them. It’s really about ensuring access to cheap green electron – the cheapest -“.

In other words, BP is not looking to become a renewable energy producer, but rather to use green energy to power its electric vehicle charging network and low-carbon fuel production. This allows it to maximize its profits while meeting the growing demand for electric vehicles.

 

T1 Energy secured $72mn via a direct offering of over 22 million common shares, aiming to strengthen its cash position and fund energy technology and infrastructure projects.
The American university unveils a new institute focused on the future of energy, funded by a $50mn gift from Robert Zorich, managing partner of EnCap Investments, to support applied research and training of new experts.
Sintana Energy has initiated legal proceedings in the Isle of Man to secure approval for its all-share acquisition of Challenger Energy, with support from over one-third of the target company’s shareholders.
EDF has selected Intesa Sanpaolo and Lazard to explore strategic options for Edison, its Italian subsidiary, as part of a broader asset review under its new chief executive officer.
TotalEnergies has signed an agreement to sell its subsidiary GreenFlex to engineering group Oteis, marking a step in its strategy to concentrate on energy production and supply.
VoltaGrid and Halliburton launch a strategic collaboration to deploy distributed power systems for data centres, with an initial rollout planned in the Middle East.
Japan's power futures market is poised for rapid expansion, backed by a government reform requiring supply contracts up to three years in advance.
PermRock Royalty Trust announces a $384,018 distribution to its unitholders, supported by higher production volumes despite a significant drop in oil prices and increased operating expenses.
The acquisition of U.S.-based ERG Environmental enables Arcwood to expand its footprint in the Great Lakes region and broaden its services to industrial and municipal sectors.
Energy services provider SLB saw its net income fall by 38% year on year in Q3 2025, even as the integration of ChampionX helped lift revenue by 4% sequentially.
A consortium led by Masdar and CPP Investments proposes to acquire all of ReNew at $8.15 per share, representing a 15.3% increase over the initial offer.
In Kuala Lumpur, Huawei Digital Power unveiled its grid-forming technologies, positioned as a strategic lever to strengthen power interconnections and accelerate energy market development across ASEAN.
Voltalia has entered a strategic partnership with IFC to develop tailored renewable energy projects for the mining sector across several African countries.
Ghana will receive increased backing from the World Bank to stabilise its electricity grid, as the country faces more than $3.1bn in energy debt.
Repsol has launched a pilot platform of AI multi-agents, developed with Accenture, to transform internal organisation and improve team productivity.
ABB recorded double-digit growth in sales of equipment for data centres, contributing to a 28% increase in net profit in the third quarter, surpassing market expectations.
UK power producer Infinis has secured a £391mn ($476mn) banking agreement to support the next phase of its solar and energy storage development projects.
The Nexans Board of Directors has officially appointed Julien Hueber as Chief Executive Officer, ending Christopher Guérin’s seven-year tenure at the helm of the industrial group.
JP Morgan Chase has launched a $1.5 trillion, ten-year investment initiative targeting critical minerals, defence technologies and strategic supply chains across the United States.
Amid rising global demand for low-carbon technologies, several African countries are launching a regional industrial strategy centred on domestic processing of critical minerals.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.