BP’s renewable energy plans come into focus

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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.

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