BP Alternative Energy - Choosing and Scaling Businesses, Dominic Emery
Speaker: Dominic Emergy, Chief of Staff, BP Alternative Energy -- BP's Alternative Energy businesses were established in late 2005, with a launch portfolio of low carbon power businesses, including wind, solar, gas-fired power and hydrogen power. At that time, BP committed to spend $8bn over 10 years in building Alternative Energy. Over the last five years, the portfolio has changed considerably. The AE businesses in 2011 still include low carbon power activities of US wind and global solar, and a major new leg of Alternative Energy, biofuels, has been added and expanded. However, during this time, a further 7 business options have been developed, experimented with, invested in, and then closed down or sold. Overall investment levels have remained above the 2005 commitment, with over $5bn spent as of the end of 2010. This dynamic portfolio reflects the nature of global renewable and alternative businesses, determined by many factors, including technology and cost improvements, scalability and materiality, and most significantly, government policy and support. Key learnings from our experience in Alternative Energy is that winning businesses need to i) have coherence with the core energy businesses of the parent company, ii) have the prospect of medium-term materiality iii) be on the right position on cost curves, and iv) be capable of profitability with limited or no policy support. This presentation will describe the thinking behind how BP Alternative Energy chose its current business portfolio, and what we have learned, good and bad, about entering this growing energy sector over the last five years.
Location: Guyot Hall, Room 100
Date/Time: 05/10/11 at 12:00 pm - 05/10/11 at 1:20 pm
Category: Climate & Energy Challenge
Department: Grand Challenges