Having released its full year results for 2021, energy giant bp has provided updates on its strategic transformation into an integrated energy company and its acceleration of net zero ambitions.

Part of this will see the company aiming to generate earnings of $9-10bn from transition growth businesses by 2030, driven by five transition growth engines: bioenergy, convenience, electric vehicle (EV) charging, renewables and hydrogen. 

Commenting on the updates, Bernard Looney, Chief Executive, bp, said, “We enter 2022 with growing confidence. The past two years have reinforced our belief in the opportunities that the energy transition presents – to create value for our shareholders and to get to net zero.” 

“The need for, and role of, an integrated energy company (IEC) has – to our minds – never been clearer.” 

The company continues to make progress on specific focus areas, including: 

Resilient hydrocarbons: since the start of 2020 the company has begun eleven new projects, completing a six-year programme that delivered 35 major projects. Through resilient hydrocarbons bp expects to sustain EBITDA at around $$33bn a year to 2025 and maintain it in a $30-35bn per year range to 2030. 

With lower carbon fuels rapidly advancing and replacing conventional fossil fuels, the company is focusing on biofuels as one of its main transition growth engines. This includes sustainable aviation fuel (SAF) and biogas. 

Another main growth engine is renewables and hydrogen. Its focus on low carbon energy is anticipated to see the company’s disciplined annual capital expenditure grow to $3-5bn by 2025 and $4-6bn by 2030. 

In hydrogen, the report states that bp has built a ‘significant’ portfolio of options in advantaged markets worldwide with potential capacity of 0.7 – 1.3m tonnes a year. Integration with renewables and carbon capture and storage (CCS) also enables additional value creation. 

In the UK, bp is currently working on projects involving the manufacture of green and blue hydrogen and CCUS projects in Teesside, Scotland and elsewhere.