BP discontinues low-carbon mobility team, but BP Pulse, the primary electric vehicle division, remains unaffected.
BP, the multinational oil and gas company, has announced a significant pivot in its strategy, moving away from its green hydrogen ambitions and reinforcing its focus on oil and gas. This change includes transport fuels such as liquefied natural gas (LNG).
The move to axe the low-carbon mobility team at BP was first reported by The Financial Times. As part of this strategy reset, BP has abandoned its planned green hydrogen project in Australia, the Australian Renewable Energy Hub (AREH), where it held a majority stake. This decision signals a retreat from large green hydrogen projects.
BP's strategy aims to grow its upstream oil and gas business and focus its downstream operations more discipline-driven. The company will still invest with increasing discipline into the energy transition, but the AREH no longer fits with this new direction. This suggests BP is currently deprioritizing large-scale green hydrogen production projects in favor of more traditional hydrocarbon-based fuels, including LNG.
Regarding BP's electric vehicle (EV) charging business, BP Pulse, there is an indication of ongoing support and development for BP's low-carbon mobility team. Recent logistics partnerships, such as the one with DHL Supply Chain for warehousing and transport contracts, reaffirm activity and growth in this area.
In summary, BP has exited its flagship green hydrogen venture in Australia, signaling a retreat from large green hydrogen projects. The company is refocusing investments on oil and gas production, likely including LNG for transport, as part of its core energy offering. BP's low-carbon mobility team continues to operate and develop the BP Pulse EV charging business, with recent logistics partnerships reaffirming activity and growth in that area. This indicates BP's current strategy integrates maintaining and possibly growing LNG and downstream transport fuels, alongside incremental low-carbon mobility efforts centered around EV charging infrastructure via BP Pulse.
- BP's new strategy centers on growing its oil and gas business, with a focus on transport fuels like liquefied natural gas (LNG), while still investing in the energy transition with increasing discipline.
- The decision to abandon the Australian Renewable Energy Hub (AREH) project signifies BP's retreat from large-scale green hydrogen production projects, which might indicate they are prioritizing more traditional hydrocarbon-based fuels.
- Despite the shift in focus towards traditional fuels, BP's low-carbon mobility team continues to support and develop BP Pulse, the electric vehicle (EV) charging business, as indicated by recent logistics partnerships.
