BP plc · LSE:BP.
BP — Investor Presentation (March 2011)
25 slides from BP's investor presentation, Mar 10, 2011
Slide 1: The Outlook for Renewables and BP Alternative Energy
The Outlook for Renewables and BP Alternative Energy Dominic Emery Chief of Staff, BP Alternative Energy
Slide 2: Agenda
Agenda • Introduction • Context – the energy landscape to 2030 • BP’s alternative energy strategy – where we invest and why alternativenergy 1
Slide 3: Moving BP forward - our strategic agenda
Moving BP forward - our strategic agenda • Putting Safety & Operational Risk Management at the heart of the company − A long term integrated approach − How we manage risk − How we operate − How we partner with governments and contractors − How we reward our people • Re-building Trust − Meeting our c
Slide 4: Going up – population, energy use, GDP
Going up – population, energy use, GDP Population Primary energy GDP Billion Billion toe Trillion, $2009 PPP Forecast Forecast Forecast 8 12 100 OECD OECD OECD 7 Non-OECD Non-OECD 10 Non-OECD 80 6 8 5 60 4 6 3 40 4 2 20 2 1 0 0 0 1970 1990 2010 2030 1970 1990 2010 2030 1970 1990 2010 2030 alternativ
Slide 5: Non-OECD economies drive consumption growth
Non-OECD economies drive consumption growth Billion toe Billion toe 18 18 16 16 * 14 14 Renewables 12 12 Hydro 10 10 Nuclear 8 8 Non-OECD Coal 6 6 Gas 4 4 OECD Oil 2 2 0 0 1990 2000 2010 2020 2030 1990 2000 2010 2020 2030 * Includes biofuels alternativenergy © BP 2011 4
Slide 6: Gas and renewables win as fuel shares converge
Gas and renewables win as fuel shares converge Shares of world primary energy Contributions to growth 50% Oil 2.5% Renewables* 40% 2.0% Hydro Coal Nuclear 30% 1.5% Coal 20% 1.0% Gas Gas 10% Hydro 0.5% Oil Nuclear Renewables* 0% 0.0% 1970 1990 2010 2030 1970- 1990- 2010- 1990 2010 2030 * Includes bio
Slide 7: The policy case - stronger policy action on climate change
The policy case - stronger policy action on climate change CO2 emissions from energy use Differences from Base Case by fuel, 2030 Billion tonnes CO2 Mtoe 40 200 2030 Base Case Iraq 5.4 billion Renewables tonnes 35 reduction 0 Hydro Policy Nuclear Case 30 -200 Liquids Coal 25 IEA “450 Scenario” * -40
Slide 8: What is driving clean energy?
What is driving clean energy? alternativenergy 7
Slide 9: Global clean energy investment continues to grow
Global clean energy investment continues to grow Global Total New Investment in Clean Energy 30% 2004-2010 ($BN) $243 4% 19% $180 $186 34% $151 48% $113 48% $76 $52 2004 2005 2006 2007 2008 2009 2010 Bloomberg New Energy Finance alternativenergy 8
Slide 10: Where does BP Play? Business Logic for BP Alternative Energy
Where does BP Play? Business Logic for BP Alternative Energy Brazil Sugar-cane • Strategic linkage to existing transportation fuels value chain • At today’s costs Brazil sugar-cane economic Biofuels US Lignocellulosic • BP expertise lies in capital intensive and resource based businesses Biobutanol
Slide 11: Biofuels will meet an increasing share of demand growth for liquids
Biofuels will meet an increasing share of demand growth for liquids Mb/d Biofuels supply Mb/d Liquids demand growth 7 1.5 40% Average annual growth (lhs) 6 Asia Pacific Biofuels share % (rhs) 30% 5 Other 1.0 4 20% US 3 0.5 2 Europe 10% 1 Brazil 0 0.0 0% 1990 2010 2030 90-00 00-10 10-20 20-30 alterna
Slide 12: BP Biofuels Strategy
BP Biofuels Strategy • Our analysis and 10 year experience of biofuels has led us to conclude that access to advantaged feedstock is the key to success. We are pursuing a three part strategy in the low carbon* biofuels market: − Brazil Sugar Cane Ethanol − A resource play to create a renewables fuel
Slide 13: BP Biofuels – operations overview
BP Biofuels – operations overview alternativenergy 12
Slide 14: Renewable power
Renewable power • The greatest scope for increasing the use of renewables in absolute terms lies in the power sector. • Demand for power, rather than transport, will be the main driver of energy growth. There are many forces at work to make vehicles more efficient – including new regulations, innova
Slide 15: Renewable power – Wind & Solar
Renewable power – Wind & Solar • 10 wind farms - over 1.3GW • Cash flows remain attractive • Low operational and commercial risks • #6 US developer today with quality assets and capability • Capabilities and fit with core BP businesses • BP has been in solar for over 35 years - technology and innova
Slide 16: Ventures and Carbon capture & storage
Ventures and Carbon capture & storage Shaping longer term emerging businesses that will be material and strategically relevant to BP Ventures Carbon capture & storage • Technology ventures • CCS centre of expertise • Carbon markets • CO2 technologies • Watching briefs • Storing CO2 since 2004 • 20 i
Slide 17: AE Ventures at a glance
AE Ventures at a glance What? ■ The corporate venture capital arm of BP Alternative Energy ■ 20 cleantech & carbon investments totalling $120m since 2006 ■ First realised return achieved in 2010 How? ■ Partnering with early and growth-stage cleantech and carbon ventures ■ Incubating high-potential p
Slide 18: Focused on three investment activities
Focused on three investment activities Cleantech Venture Capital Cleantech start-ups in core innovation hotspots Selected leading cleantech VC funds Early and growth stage Carbon Offsets Investments Next generation compliance carbon credits Selected pilot and explorative projects and funds
Slide 19: To create both financial and strategic value
To create both financial and strategic value In support of Strategic insights ■ Seeing beyond the current horizon and reach of BP ■ AE’s core businesses ■ Early insights into tomorrow’s technologies and businesses Strategic options ■ Accessing new technologies and partners ahead of competition ■ Inc
Slide 20: Leveraging unique capabilities and partners
Leveraging unique capabilities and partners Carbon Market Leaders Universities and research centres ■ Global clean energy businesses ■ Major research programmes ■ +2000 staff in six continents ■ Deep clean energy market and policy expertise Global multinational companies ■ One of the largest global
Slide 21: Our current portfolio
Our current portfolio cleantech funds biotech carbon Vantage Point Synthetic Genomics South Pole China Environment Fund Mendel Biotechnology Camco CDM Project Pool Zouk Ventures Ltd Qteros (US) PCF Fund REAC CCF Carbon Conscious Noel Kempff Mercado World Bank FCPF solar efficiency storage Brightsour
Slide 22: Spinning-out Breathing Buildings
Spinning-out Breathing Buildings The company Breathing Buildings is based in Cambridge, UK. The solution Breathing Buildings develops and commercialises low energy ventilation systems, based on unique airflow modelling capability and experience. Their first product range, the e-stack systems, are al
Slide 23: Participating in the EV Project
Participating in the EV Project The project The EV project in the US, led by Ecotality, is the largest Electric Vehicle project in the world. The EV project won $99.8m DOE grant funds to deploy 12,000 charging systems across 11 cities in 5 US states. Nissan will roll out 5000 LEAF vehicles in the pr
Slide 24: Conclusion
Conclusion • A diversifying fuel mix - over the period 1990-2010 fossil fuels contributed 83% of the growth in energy; over the next twenty years fossil fuels are likely to contribute 64% of the growth. • Renewables (excluding hydro) and biofuels together account for 18% of the growth in energy to 2
Slide 25: The Outlook for Renewables and BP Alternative Energy
The Outlook for Renewables and BP Alternative Energy Dominic Emery Chief of Staff, BP Alternative Energy