BP has to spend $35 billion per year to be net zero compliant by 2050

November 23, 2023 07:02 AM PST | By Invezz

BP has to spend $35 billion per year to be net zero compliant by 2050 — Image source: Invezz

How much does BP need to spend per year?

The multinational will have to aggressively expand its footprint in carbon capture and invest heavily in removal systems to if it wants to be net zero compliant in 2050 while maintaining oil and gas output at the current level, as per the IEA.

This would involve developing around 60 Mt CO2 of CCUS capacity and around 200 Mt CO2 of carbon removal capacity.

Such a drastic increase in capacities will likely require annual investment of about $25 billion on top of another $10 billion to maintain production of oil and gas at current levels, the intergovernmental organisation added.

BP shares are down roughly 15% versus their year-to-date high at writing.

Watch here: https://www.youtube.com/embed/p4ZCM4GdqMQ?feature=oembed

How much is BP plc spending currently?

Note that the aforementioned estimated investment that’s needed is “three-and-a-half-times” more than what BP plc has spent annually on average over the past five years.

A cheaper alternative, as per the International Energy Agency, is for the London-based behemoth is to extend its presence in low-emission fuels – an approach that would require capital expenditures of about $20 billion a year through 2050.

BP just announced that it will join Shell in slowing its transition to clean energy.

The company plans to use record profits from 2022 to invest an additional $8 billion in fossil fuels.

BP also plans to aim for 20% carbon reductions by 2030 vs. its original 40% target.
— Michael Thomas (@curious_founder) February 7, 2023

The news arrives about a couple months after Bernard Looney stepped down as the Chief Executive of BP plc following allegations of personal relationships with colleagues as Invezz reported here.

Wall Street currently has a consensus “overweight” rating on $BP.

The post BP has to spend $35 billion per year to be net zero compliant by 2050 appeared first on Invezz

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