Decarbonizing Energy: BP's Solar Investment -- One Small Step

The British-based company, BP, has for many years sought to transition from being primarily a producer of oil to a producer of low or zero-carbon energy.

Initially the focus was on increasing the production and distribution of natural gas, a fuel that, on combustion, yields about a third more energy per unit of carbon dioxide emitted than does oil. Furthermore, due to higher plant efficiency, replacement of natural gas for coal in electricity generation lowers by half the amount of carbon emitted per unit of power generated.

In addition, BP has invested in most areas of alternative energy including wind, solar, ethanol, carbon-free hydrogen and landfill methane. Among these investments, the most promising results thus far have been in the field of solar power. Through a 50% stake in Lightsource BP, BP now has a stake in two gigawatts of solar power generating capacity, with something like another half gigawatt to be installed this year -- that's about 5% of the World's total capacity.

A simple way to understand the significance of BP's solar investments is to translate installed solar capacity to power production measured in barrels of oil equivalent. Then the solar power business can be directly compared with BP's original business of oil production.

Although we do not know the power output per unit of installed capacity for Lightsource BP, we know that worldwide, the average year-round electrical energy production per kilowatt of installed solar capacity is around 1200 kilowatt hours. Applying that value to Lightsource BP's plant indicates that electrical production by the end of this year will be at a yearly rate of around 3000 gigawatt hours. One gigawatt hour is equivalent in energy to 588 barrels of oil. Therefore, the solar power generated by BP's share in Lightsource BP amounts to around 1.75 million barrels of oil per year.

How does that compare with BP's oil and gas production?

Its about 12 hours worth.

So, yes, BP is looking in the right direction, but for their solar investments to change the world is gonna take a while.