bp to Invest $11B in Germany’s Energy Transition

bp to Invest $11B in Germany’s Energy Transition

bp to invest up to €10 billion ($10.7 billion) in low-carbon fuels and renewables in Germany by the end of this decade.

Germany is one of a handful of countries BP is targeting to build up its strategy to shift away from fossil fuels towards low-carbon fuels and electricity.

As competition over the energy transition of Europe’s largest economy intensifies, bp aims to increase its investments in electric vehicle (EV) fast chargers, decarbonize its refineries, and develop wind power. It is also considering establishing a local hub to import low-carbon hydrogen.

“We are talking about refineries, we are talking about the largest petrol station network in Germany, we are talking about existing business relationships, about strong brands,” said Patrick Wendeler, who chairs the board of bp Europe.

The €10 billion euros are new investments, including a €678 million payment BP must make after winning two licenses in Germany’s last offshore wind auction in July.

Between 2023 and 2030, bp plans to invest $55 billion to $65 billion in its new transition businesses, which will match its investment in oil and gas.

bp has been operating in Germany through antecedent firms for almost a century and employs over 4,000 employees there, accounting for approximately 6% of its entire workforce.

Besides, bp has opened a new office in Hamburg to supervise its offshore wind operations. “And we will have areas where we will consolidate because the existing energy system is one that is declining strongly,” Wendeler said, adding that crude oil capacity in Germany will drop further.

bp has two refineries in Germany, at Lingen and Gelsenkirchen, as well as Aral, the biggest petrol station network in Germany. It also provides more than 1,700 fast EV loading spots in Germany via its Aral brand.

Wendeler stated that bp intends to install up to 20,000 charging stations by 2030, expecting to capitalize on the increased adoption of EVs as automakers such as Volkswagen and BMW launch new models.

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