British Petroleum, (BP) is one of the world's largest energy companies, it's origins dating back to May 1901. Despite BP's reputation as an oil and gas giant, it has taken highly innovative steps to move away from fossil fuels and toward the development of alternative energy sources. BP states that, as a global energy business, its aim is clear: to reduce its environmental footprint by producing cleaner products and encouraging customers to use them safely and efficiently
Innovation
During 2004 BP opened a 4MW solar farm – one of the largest in the world – near Merseburg in Germany. The farm supplies enough power to meet the needs of 1,000 four-person households. BP reports it continues to explore the potential of Building Integrated PV (BiPV) systems, which are constructed as integral parts of buildings. In the UK, for example, the company has a partnership with Romag, a leading manufacturer of BiPV. In California, one of BP's key markets, its Solar Home Solutions package is now more widely available than ever, thanks to a tie-in with the home improvement company The Home Depot. And in Europe, the Real Power campaign, has promoted Saturn 7 – a product that guarantees improved performance for customers.
BP's efforts are also focused on the development of 'wind farms' at existing BP refineries and petrochemical sites, many of which are in suitably exposed locations and can offer opportunities to blend new wind facilities into already industrialized landscapes. In 2004, the company's jointly owned 22.5 megawatt wind farm near Rotterdam, in The Netherlands, completed its first full year of commercial operation and provided sufficient clean electricity to power 20,000 typical Dutch homes and displace some 20,000 tons of carbon dioxide. BP is currently examining the feasibility of developing similar projects at its other, selected sites in Europe and elsewhere.
Energy from renewable sources like the sun, wind or water produces no carbon emissions, but is still much more expensive to produce than energy from hydrocarbons. Solar cell production has grown by around 30% annually over the past five years and cumulative world production is now more than 3,000 megawatts (MW). This still represents a small proportion of the energy used worldwide. For example, the total growth in solar capacity worldwide in 2004 was around 800MW – equal to the output of two average gas fired turbine power generators. However, BP was determined to build a sustainable solar business that’s both profitable and environmentally beneficial and to begin developing "wind farms".
Impact
BP Solar made a profit for the first time in 2004 and increased global sales of solar capacity by more than 30%. Its revenues rose from $307m in 2003 to over $400 and it is aiming for similar growth rates in 2005. This was achieved following the reshaping of BP's business over a two-year period, during which time the company lowered costs, focused on key growth markets (particularly the US and Germany), and concentrated on its most successful products.
Productivity improved as well, according to BP, following a worldwide ‘Lean Manufacturing’ initiative. It now has a strong base from which to grow and in 2004 announced plans to double its capacity from around 90MW to 200MW by 2006.
It‘s estimated that an average growth rate of almost 25% per annum could be achieved for electricity derived from wind power by 2012. This would result in a 30-fold increase from 1996 levels - underlining the fact that this renewable energy source has enormous potential.
Inspiration
"In an uncertain and challenging world, our key objective for the long term is simple – to be there for the long term and to be a positive influence."
"I leave you to judge whether BP is an increasingly responsible company that deserves to prosper for decades. It is a judgement that will be based not on reports or words alone, but on witnessing sustained, consistent actions by the group’s 102,900 people worldwide."
John Browne
The Lord Browne of Madingley
Group Chief Executive
The World Inquiry editorial team edited this profile from the original submission of the interviewer or other source. The views expressed do not necessarily represent Case Western Reserve University, the Weatherhead School of Management or the Center for Business as an Agent of World Benefit. More >>
