bp to invest up to £18 billion in UK energy system by 2030

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bp intends to invest up to £18 billion in the UK’s energy system by the end of 2030, demonstrating bp’s strong commitment to the UK and assisting the country in meeting its bold ambitions to boost energy security and achieve net zero emissions. bp intends to continue investing in North Sea oil and gas as one of the largest oil and gas producers in the UK, while reducing operational emissions. bp is also working on a number of low-carbon energy investments in the United Kingdom, which are expected to create jobs and develop new skills and capabilities.

“We’re backing Britain. It’s been our home for over 110 years, and we’ve been investing in North Sea oil and gas for more than 50 years. We’re fully committed to the UK’s energy transition – providing reliable home-grown energy and, at the same time, focusing on the drive to net zero. And we have ambitious plans to do more and to go faster. Our plans go beyond just infrastructure – they see us supporting the economy, skills development and job opportunities in the communities where we operate. We are all in,”

Bernard Looney, chief executive officer, bp, said.  

These projected investment figures are in addition to bp’s substantial operating expenditure in the UK. Prior to the pandemic, bp’s activities were estimated to support 0.5 percent of UK GDP in 2019. BP also expects to pay up to £1 billion in taxes on its North Sea profits in 2022, on top of the £0.25 billion it has paid in other taxes in the UK in recent years.

Among the UK projects in which BP intends to invest, as well as the broader activities that will support them, are:

North sea:

  • Developing lower-emission oil and gas projects to support near-term supply security, such as the Murlach, Kate, and Mungo fields in the central North Sea around the bp-operated ETAP hub, and the Clair and Schiehallion fields west of Shetland.
  • Investing in exploration in the vicinity of its existing North Sea hubs.
  • Moving forward with asset electrification projects in the Central North Sea and West of Shetland to reduce operational emissions and support the North Sea Transition Deal.

 Offshore wind:

  • In partnership with EnBW:
  • Two 60-year offshore wind leases in the Irish Sea have been developed by a developer (combined potential generating capacity of 3GW).
  • In the ScotWind round, the developer of a lease option (potential generating capacity of 2.9GW) off the east coast of Scotland.
  • These three areas could generate enough energy to power over six million UK homes each year if they were combined.
  • Investing in infrastructure, ports, harbours, and shipyards, as well as building four ships to support offshore wind projects across the UK, subject to technical and commercial due diligence. These new constructions are expected to cost more than £100 million and to support 500 jobs.
  •  Committing more than £1 million to X-Academy in Scotland in a five-year deal as part of the successful ScotWind bid with EnBW, to support both reskilling experienced workers and the creation of entry-level energy transition roles.
  • Making Aberdeen bp’s global operations and maintenance centre of excellence for offshore wind, with up to 120 new direct jobs created.

 EV charging:

  • Planning to invest £1 billion in electric vehicle charging in the UK over the next ten years – bp’s largest-ever EV charging expansion – tripling the number of bp’s UK charging points by 2030 and deploying more rapid and ultra-fast chargers in strategic locations. 
  • Hundreds of new jobs are expected to be created in the UK as a result of the investment.

Hydrogen:

  • Planning to create two large-scale hydrogen production facilities:
  • H2 Teesside (blue)
  • HyGreen Teesside (green)
  • Together, aiming to produce 1.5GW of hydrogen by 2030 – 15% of the UK government’s 10GW target by 2030. 
  • H2 Teesside could create more than 600 operational jobs and another 1,200 construction jobs by 2027. 
  • bp has also signed an agreement with Redcar & Cleveland College in Redcar, Teesside, to support green skills and education initiatives on Teesside.

CCS:

  • Leading the Northern Endurance Partnership, to serve the East Coast Cluster (ECC). The ECC has recently been named as one of the UK’s first CCS projects and aims to remove nearly 50% of all UK industrial cluster CO2 emissions.
  • Leading Net Zero Teesside Power (NZT Power) which could be the world’s first commercial scale gas-fired power station with carbon capture – with the ‎potential to deliver enough low carbon, flexible electricity to power around 1.3 million homes. 
  • NZT Power could support more than 3,000 jobs during construction and over 1,000 jobs once operations begin. 

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