BP Big Polluter: Cleaning Up its Act with $2 Billion Investment?
Posted by Lisa Carey
While the clean up of the Gulf Coast oil spill of 2010 continues, BP is in the news this month for their efforts to “clean up” in the alternative energy arena. BP launched the new division BP Alternative Energy in 2005 following the success of BP Solar. Like GE’s campaign, Ecomagination, that focuses on new investments in clean energy technologies, BP Alternative Energy invests in alternative and renewable energy technologies including solar, wind, hydrogen and combined cycle gas turbine (CCGT) power generation.
The BP pledge in 2005 was to invest $8 billion dollars over the next ten years. By the end of 2010, BP had already invested over $5 billion and now Katrina Landis, chief executive of the company’s low-carbon unit, announces that BP will invest $2 billion this year putting the company ahead of schedule.
“We have many interesting opportunities to continue the development of those businesses which will take us well beyond that $8 billion in 10 years,” Ms. Landis said.
According to Landis, investments will focus on biofuels, wind and solar and that there is also an interest in battery technology.
“Provided that we continue bringing forward projects that meet our return criteria, we will continue to invest,” she said.
BP asks, what happens to Tax Credits after 2012?
The current tax credits for renewable energy will expire and BP wants to know what incentives will be next. Landis urges the U.S. government to be clear.
“Industry pauses and says what are the rules of the game going to be beyond that time,” she said. “You’re not going to invest large amounts of capital without understanding the return you’re going to get.”
BP Cries Heard Round the World as Clean Energy Policies Change
Italy- the government is curbing subsidies and reducing incentive rates for solar projects
U.K.- the government also proposed cuts in the “above-market” prices for solar projects
Spain- “feed-in” tariff brought cuts to a number of projects there
Landis said, “That’s a really difficult proposition for a business, when you actually put capital on the ground and suddenly all the rules change.”
Hmmm… I’ll bet there are some fishermen on the Gulf Coast that can relate to that.
While BP talks about investments in Clean Energy, lots of people are still asking, what about the clean-up? Government officials are saying that 80 to 90% of the beaches are clean but others may take up to five years. Clean up crews are claiming that they’ve not been paid and others are urging that experts be brought to the area on chemical illnesses to deal with spikes in (possibly related) symptoms. While BP invests $2 billion in the future of alternative energy, many people would like to see more investment in the past as the one-year anniversary of the BP disaster on April 20 approaches.
The Latest on the Oil Spill: Alarming estimates, Dawn to the rescue and chilling photos
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I’m really not a fan of BP. They say they are doing good work in the solar arena, but they’re depleting the liquid sun (oil) stored under the ground way faster than they’re doing anything with the sun above ground.