By Giulia Petroni 
 

BP PLC said Tuesday that it has made progress with its plans to reduce oil-and-gas production and expand in lower-carbon energy after setting up net-zero goals last year.

The London-listed company said it has added a further 2 gigawatts to its renewables pipeline in the third quarter of the year, while its renewable-development arm Lightsource bp has increased its growth target by 25% to 25 GW by 2025.

 

BP's strategy to cut net emissions to zero by 2050 includes:

 

--Cutting oil-and-gas production by 40% from 2019 levels by 2030 through active portfolio management/

 

--Increasing low-carbon investment 10-fold to around $5 billion a year by 2030, building an integrated portfolio that counts in renewables, bioenergy, hydrogen and carbon capture and storage technology.

 

--Developing renewable-generating capacity of 20 gigawatts by 2025 and around 50 GW by 2030, which would represent a 20-fold increase from 2019.

 

--Cutting emissions from operations by 30%-35% and from upstream oil-and-gas production by 35%-40%, while reducing the carbon intensity of its products by more than 15% from 2019 levels by 2030.

 

Chief Executive Officer Bernard Looney said Tuesday that keeping the company's fossil-fuel and renewable-energy operations together makes sense as cash flows from oil and gas help fund low-carbon businesses. He said he wasn't aware of any investors wanting to split BP's operations.

Mr. Looney's comments came after Royal Dutch Shell PLC's activist investor Third Point LLC last month called for the Anglo-Dutch major to split into different companies to improve its environmental and financial performance.

 

Sarah McFarlane contributed to this article.

 

Write to Giulia Petroni at giulia.petroni@wsj.com

 

(END) Dow Jones Newswires

November 02, 2021 12:38 ET (16:38 GMT)

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