BP to Raise Investment in Alternative Energy (AP)
BP Alternative Energy will manage BP's growing investments in solar, wind, hydrogen and gas-turbine power generation. They say the unit's investments could amount to $8 billion over the next ten years, generating revenues of around $6 billion a year within that time, employing several hundred staff, and achieving a 15 percent return on capital.
December 08, 2005
It's good news for the alternative energy industry for BP to declare it ready for major investment. Said BP chief executive Lord Browne in the BP press release:
“We are now at a point where we have sufficient new technologies and sound commercial opportunities within our reach to build a significant and sustainable business in alternative and renewable energy.”
BP is smart: Forming an alternative energy investment unit is a good way to deflect general criticism of oil companies for not reinvesting their current windfall profits in research.
And clever: Note that they're not investing in alternatives to petroleum, such as biodiesel or hydrogen, that would eat into their profitable oil and gas business. (The hydrogen project BP announced would generate electricity from a power plant in Scotland. The hydrogen would come from natural gas.)
And shrewd: CO2 sequestration is a good environmental move because it gets rid of carbon -- but it also helps make older oil fields more productive.
The announcement doesn't mention whether nuclear power is one of the "alternatives" in which BP would invest, but there is currently a tremendous amount of industry spin attempting to reposition nuclear as green power.
BP's statement says it "may invest up to" $8 billion over 10 years. Meanwhile, their budget for conventional oil and gas projects is almost $15 billion per year.
The investment represents only fraction of BP's annual capital expenditures but is an eightfold increase from the $1 billion spent over the past decade, according to the Associated Press.
Exxon Mobil, meanwhile, dismisses renewable energy and puts its record profits into shareholder dividends.
Traded companies:
BP PLC, NYSE: BP
Exxon Mobil, NYSE: XOM
Comments (Moderated)
As a longtime nuclear power worker, I'm genuinely not sure if nuclear should be part of our future energy mix, but on the other hand I see no other non-CO2, high-density power sources to replace it.
If you would like an entertaining inside look at the American nuclear power industry, see my techno-thriller novel "Rad Decision," which is provided at no cost to readers at RadDecision.blogspot.com
James Aach
http://RadDecision.blogspot.com
Posted by: James Aach | December 8, 2005 07:41 PM
hi everybody,
I've found this really interesting video podcast's feed about hydrogen as energy source and related Hydrogen Olympics:
apple:
http://phobos.apple.com/WebObjects/MZStore.woa/wa/viewPodcast?id=115485761&s=143450
xml:
http://www.gommunity.com/podcast/torino/podcast.xml
cheers
Editor's note: In Italian, with English subtitles legible when you enlarge the video.
Posted by: desertx | February 9, 2006 07:30 AM
Hello. My name is David Arnold . I am Vice President of MMS - A / E , Inc.. MMS is a full service architect and engineering firm. I am responsble for our altternative energy development division.
I am interested in sharing information with those who are involved or who want to be involved , with development of their own alternative energy programs and systems.
Posted by: David Arnold | May 10, 2006 06:54 AM