Alternative energy

BP plans to double its investment in alternative and renewable energies, creating a new low-carbon power business.

Building on the success of BP Solar – which expects to hit revenues of $1 billion in 2008 – BP Alternative Energy will manage an investment programme in solar, wind, hydrogen and combined-cycle-gas-turbine (CCGT) power generation, which could amount to $8 billion over the next ten years.

The first phase of investment would total some $1.8 billion over the next three years, spread in broadly equal proportions between solar, wind, hydrogen and CCGT power generation.

BP currently has 10% of the global market share for photovoltaic systems – a market which is growing at 30% a year, faster than any other form of renewable energy.

BP also has more than 100MW of solar manufacturing capacity in the US, Spain, India and Australia, with a plan to double its capacity before the end of next year. BP recently signed a strategic joint venture to access China’s expanding solar market and provide local manufacturing capacity and is exploring similar opportunities elsewhere in the region.