The Daily Telegraph - Business

Re­new­ables grow­ing faster than any fuel in his­tory, says BP

- By Ed Clowes

OIL ti­tan BP has said that re­new­able power is grow­ing faster than any other fuel in his­tory, ahead of a crunch in­vestor meet­ing to­day.

The com­pany made the strik­ing ad­mis­sion in its 2020 edi­tion of the BP En­ergy Out­look, which ex­plores the pos­si­ble paths for how big oil com­pa­nies might re­duce their emis­sions.

This week, BP will host in­vestors from around the world at its cap­i­tal markets days in an at­tempt to con­vince some of the largest funds in the world that it is com­mit­ted to go­ing green. In Fe­bru­ary, the com­pany vowed to slash its car­bon emis­sions from oil and gas pro­duc­tion to “net zero” by 2050.

The £96bn oil ti­tan is launch­ing a huge re­struc­tur­ing op­er­a­tion un­der new boss Bernard Looney but many share­hold­ers re­main un­con­vinced by the plan, wait­ing for the de­tails that have been promised for this week.

In its new re­port, BP has out­lined the three most likely sce­nar­ios for the next 30 years in oil and gas. In the main sce­nar­ios it con­sid­ers, global en­ergy de­mand con­tin­ues to grow for at least part of the pe­riod to 2050, with a de­clin­ing role for fos­sil fu­els off­set by an in­creas­ing share for re­new­able en­ergy and a grow­ing role for elec­tric­ity.

One of the key themes is the wan­ing de­mand for oil. All three of the com­pany’s fore­casts see oil de­mand fall over the next 30 years: 10pc lower by 2050 in its busi­ness as usual pro­jec­tion, around 55pc lower in its rapid change out­look, and 80pc lower in its most ag­gres­sive sce­nario. In “busi­ness as usual”, de­mand plateaus in the early 2020s and in both “rapid” and “net zero” oil de­mand never fully re­cov­ers from the fall caused by Covid-19.

Last month, as BP cut its div­i­dend and posted a his­toric quar­terly loss, it set out an am­bi­tious plan to slash fos­sil fuel pro­duc­tion by 40pc over the next decade and in­crease its in­vest­ment in re­new­ables to $5bn (£4bn) a year.

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