BP is readying offshore wind bids in the course of the subsequent six months with heightened hydrogen exercise additionally within the pipeline, the oil main’s CEO, Bernard Looney, mentioned Tuesday.

Throughout the firm’s Q3 outcomes name, Bernard Looney mentioned BP would “most likely” bid in offshore wind auctions which might be scheduled in the following six months. The agency revealed a U.S.-focused partnership with Equinor in September, its first foray into offshore wind. Looney mentioned bidding in auctions over the following six months would even be carried out in partnerships relatively than independently.

In its dwelling market within the U.Ok., there are lively seabed leasing rounds. Denmark’s 800 MW to 1,000 MW Thor mission closes to bids on March 15. The Netherlands’ Hollandse Kust (west) mission, which could possibly be as giant as 1,400 MW, is scheduled to tender in Q2 2021.

BP is concentrating on 20 gigawatts of renewables by 2025 and 50 GW by 2030. It presently has round 10 GW accomplished or within the works and choices on one other 20 GW. Most of its early successes have come through its 50 p.c stake in photo voltaic developer Lightsource BP.

Looney mentioned the corporate is extra seemingly so as to add megawatts through partnerships, like these with Lightsource BP and Equinor, and capability auctions than by merger and acquisition exercise.

“Partnerships will likely be…a key issue on this build-out, fairly frankly, similar to [they are] within the conventional oil and fuel enterprise. […] We companion all world wide at present in oil and fuel, and partnership will likely be no completely different as we glance to construct out our low-carbon place.”

“Over the approaching six months, you will most likely see us bid [in offshore auction rounds]. We’ll do this in partnerships; we think about form of natural build-out,” he mentioned, including that there aren’t any “materials” merger and acquisition offers within the fast future however that they need to not be dominated out as a risk.

French rival Complete has made a number of big offers to swell its personal portfolio of renewables, together with main photo voltaic offers in Spain and India and wind acquisitions within the U.Ok., Denmark and France. Three photo voltaic offers in Spain have netted the corporate greater than 5 gigawatts of capability.

Hydrogen motion seemingly “within the coming months”

Like many of its friends, BP is eyeing the potential of hydrogen throughout its enterprise. Looney once more acknowledged that hydrogen is unlikely to grow to be a big accounting line till 2030. Regardless of that, he trailed an uptick in hydrogen exercise within the quick time period.

BP is backing each blue and inexperienced hydrogen. A fuel energy plant in northeast England with carbon seize and storage capabilities would be the basis of a low-carbon industrial cluster with blue hydrogen fed to industrial clients. 

“I feel hydrogen is a core a part of what we imagine in for the longer term,” he advised analysts, including that the main target for BP will be heavy transport and business, with the corporate utilizing hydrogen at its personal refineries in Germany. It is usually exploring a inexperienced hydrogen distribution trial with utility RWE.

“We’re believers in hydrogen being a gas of alternative, and perhaps the gas of alternative for heavy-duty transport over the medium time period. We’re within the midst of exploring that extra [and the] partnerships that we would have round the world. That is work that is ongoing for the time being,” mentioned Looney.

“It is best to anticipate to see a bit extra from us within the coming months and positively as we head into 2021,” he added.

BP outcomes beat expectations

BP’s Q3 outcomes noticed it put up a modest, and shock, revenue of $100 million. Monetary analysts had been anticipating a similar-sized loss. The determine compares to losses of $6.7 billion within the second quarter of 2020 when oil and fuel asset write-downs hit it arduous.

The corporate additionally managed to dial its debt down by $500 million because it continues to enhance its stability sheet and spend money on low-carbon expertise and providers. To that finish, the corporate halved its dividend earlier this yr, the primary dividend minimize in a decade.

CFO Murray Auchincloss reiterated BP’s spending priorities, which begin with the dividend, adopted by decreasing debt, low-carbon funding, oil and fuel funding, and, lastly, share buybacks, in that order.

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