BP TO PUT $2 BIL IN NEW ENERGY

BP to Invest Almost $2 Billion in 2011 on Alternative Energy, Landis Says
Sally Bakewell, April 5, 2011 (Bloomberg News)

"BP Plc will invest almost $2 billion this year in alternative energy, more than the London-based oil company has previously stated, said Katrina Landis, chief executive of the company’s low-carbon unit.

"BP had pledged to invest $8 billion over 10 years when it started its BP Alternative Energy plan in 2005, an average of $800 million a year. By the end of last year, it had invested $5 billion…[and it will now go] ‘well beyond that $8 billion in 10 years’ Landis said…"

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"Biofuels will have a ‘tremendous opportunity’ to expand in the next decade, and the company also is building businesses in wind…solar energy…[and] battery technology…Landis urged U.S. government officials to make clear what incentives will be available for renewable energy after tax credits expire in 2012…[to drive] large amounts of capital [investment]…

"The company had waited on some of its European solar projects until incentive policy became clear, Landis said…[then built] 50 megawatts of solar projects in Italy. The Italian government is curbing subsidies to undercut a boom in the industry and plans to issue new targets and reduce incentive rates from June."

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"The company is also unlikely to develop large solar projects in the U.K. after the Conservative-led government proposed cuts in above-market prices paid for solar projects that targeted bigger reductions at larger plants, Landis said…

"BP developed a number of projects in Spain last year that became subject to cuts to the so-called feed-in tariff in that country, Landis said…"