Brazil to China: BP's continued energy transition

Following BP’s recent announcement of the expansion of its Lightsource BP solar energy programme into Brazil, and its investment in methane converting business Calysta, reported on here, the energy producer has announced a new partnership with the Chinese app-based transportation service Didi Chixing (DiDi). The intention of the partnership is to build electric vehicle charging infrastructure throughout China.

The joint venture represents an effort on the part of BP to restructure their business model to offer energy from sources other than fossil fuels and other non-renewables. The company, who is familiar with public backlash from environmental degradation following its infamous Gulf of Mexico oil spill, appears to be making investments in a new clean energy transition, despite rising oil production figures over the last year.

BP has chosen a good time to invest in the electric vehicle charging station market. Recent forecasts from Bloomberg New Energy Finance predict significant returns on investment in this market due to the rapidly declining overhead costs of the lithium-ion batteries required for stationary energy storage units and electric vehicles. More on these predictions here. China is also currently one of the world’s largest electric vehicle consumers.

These energy transition efforts could be what sets BP apart from other non-renewable energy providers in the coming decades. If other businesses are unable to make the transition to clean energy through similar investments, they risk falling to the wayside.

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