BP’s getting less alternative

The oil giants seem to be retreating from the renewable energy market, except where they can be sure of profit. In a prime example BP, which promotes itself as an oil company that goes ‘Beyond Petroleum’, seems to be continuing its withdrawal from the renewable energy market.

The company has just sold its Indian wind farm portfolio to Green Infra, following a summer which has seen it close down solar plants in the US and Spain, and the closure of the London-based headquarters of its renewable energy business, BP Alternative Fuels. BP does still have solar operations in India, but these are through its joint venture BP Tata Solar. At issue seems to be the level of risk that the company is prepared to shoulder. In July 2009, BP’s chief executive said that the company is still investing in alternative energy, but said that given the economic climate the money needed to be focused where it was most likely to achieve a return.

A withdrawal from the UK wind industry was said to be due to lack of available land, as well as problems in getting planning permission. BP is still investing in the US onshore wind market, as land is readily available and planning permission relatively easy to obtain. The question is what this refocus will mean globally - outside the US, the company is focusing on new oil exploration, coal-bed methane and even tar sands. Without a framework to ensure that the fossil fuel giants explores renewables, it looks as if they'll be focusing on
‘alternatives’ instead.