bp strategy resetting not to impact the group’s India green biz

Energy giant bp’s India green energy business will not see much shift following its recently announced resetting of fundamental strategy for the group.

On February 26, bp introduced a fundamentally reset strategy, with significant capital reallocation, and plans to drive improved performance, aimed at growing free cash flow, returns and long-term shareholder value. The strategy was with clear focus on increasing oil and gas investment, aligning refined products business and disciplined investment in energy transition.

The strategy spoke about selective investment in biogas, biofuels and EV charging; capital-light partnerships in renewables; focused investment in hydrogen/CCS; investment in transition businesses of $1.5–2 billion per annum, which was over $5 billion per annum lower than previous guidance.

In addition to its significant investments in the upstream and downstream side of businesses, in India, bp is one of the first global energy players to move into the green space. o. Despite the global strategy shift, the energy major’s India business is working with ease, an official in the know told businessline.

In July 2020, bp had announced its intention to invest $ 70 million into the Green Growth Equity Fund (GGEF) in India. The fund, established in 2018, was focused on identifying, investing and supporting growth in zero carbon and low carbon energy solutions in the country.

In October 2024, bp completed its acquisition in Lightsource bp, one of the world’s leading developers and operators of utility-scale solar and battery storage assets. Lightsource bp is an international solar business with large projects in India where they develop, finance, build and operate utility-scale solar power projects and solutions.

The large part of bp’s green business now is under the umbrella of Lightsource bp. It is business as usual at Lightsource bp in India, the official said.

“We are investing in lower carbon energy in a capital-light and innovative way, by maximising business, combining capabilities and accessing external financing. We are also globally looking for a partner to further maximise the capabilities of Lightsource bp” the official said.

In other green initiatives along with its growing gas business (a cleaner bridge fuel for the transition), bp has initiated an India centric research in the field of bio-space and biofuels. It has also invested in three start-ups here — BluSmart (an EV ride hailing company), Magenta (an EV last mile delivery company) and Zingbus ( an EV bus transport company  ).

The Jio-bp joint venture is focused on creating the maximum number of EV charging stations. It has 5500 charging points till date. bp and Reliance Industries Ltd (RIL), joint venture, Reliance bp Mobility Ltd, operates under the “Jio-bp” brand and aims to become a leading player in India’s fuels and mobility markets.