Are BP leaving green energy behind?

[bruce]

BP today indicated it could put its $7bn wind and solar energy businesses up for sale.

In a startling volte-face from the 'Beyond Petroleum' future envisaged by his predecessor Lord Browne, chief executive Tony Hayward today signalled green energy will no longer be a BP priority.

BP may sell off green energy interests | This is Money

[emz]

Geez, that sucks. You'd have thought with oil becoming scarce that renewables would be a big source for future investment.

Anyone know what they'll be investing in instead?

[fireandrain]

That's strange because I'd heard that BP are still investing big in green energy.

BP has invested $1.5 billion in alternative energy since its launched its green energy arm, and plans to put the same amount again into it by the end of this year, up from $1.1 billion in 2007 and a mere $0.6 billion in 2006.

BP will have 3GW of gross wind power capacity by the end of 2010. To date, it’s invested $0.8 billion, and will be investing another $0.6 billion in wind this year and there’s a wind development pipeline of over 15GW ahead.

Its solar business is expanding and the oil giant expects to sell 800MW-ish in 2010. vested $150 million in solar last year, a figure it will double by 2008, and its solar sales are expected to grown by over 60 percent a year.

On the biofuels, hydrogen and CCS (carbon capture and storage, not the Brazilian band) front, it’s a little more hazy. BP just says there are “some major projects” in the works, which makes it sounds a little like Prince talking about his latest album.

Bloomberg.com: U.K. & Ireland

[LMagic007]

Interesting. I wonder what the motivation for that is ? I know they had profit slumps the last two quarters, so I wonder if their cash position is becoming a concern. It's been suggested, that their renewable energy business has also not performed very well on the balance sheet.

The group's gas, power and renewable business plunged into the red after increased spending on alternative energy. Hayward has said the division is to be broken up in a move that will give greater visibility to the spending and returns from the green strategy.

BP details troubles after profits dive 45% | This is Money

Perhaps appropriate carbon taxation might help improve the profit performance of renewables.