Follow us:
Subscribe to our e-newsletter

logo

  • Energy
  • Construction
  • Resources
  • Projects
  • Products and Services
  • Events
  • Online Magazine
  • Advertise
  • Contact
Home
  • Energy
  • Construction
  • Resources
  • Projects
  • Products
  • Events
  • Online Magazine
  • Advertise
  • Contact

European oil companies are leading the way in renewable strategies

04 Dec, 2020
14



European international oil companies (IOCs) are leading the way in terms of progressing strategies for renewable power growth, ahead of US players that have not, so far, made the same switch, says GlobalData.

According to GlobalData’s latest analysis, the top six European firms have over 28 gigawatts (GW) of renewables capacity in the pipeline, with BP, Total and Equinor making up over 70 per cent of this. However, the scale of these companies’ developments still lags behind major power sector incumbents.

Managing Oil and Gas Analyst at GlobalData, Will Scargill, commented: “IOCs’ current development portfolios are still significantly smaller in scale than those of incumbents in the power sector. However, long-term targets suggest an ambition to make up this ground – with BP’s 2030 target of 50GW significantly exceeding Orsted’s target of 30GW.”

“The rapid build-out of European IOCs’ renewable portfolios is encouraging as they look to position themselves for the energy transition,” Mr Scargill said.

“However, lofty ambitions do come with significant risk – particularly as they will still look to their oil and gas businesses to be the major cash generators through the medium term. A weak oil and gas market could leave companies unable to fully fund their renewables growth plans, leaving them with a diminished position in the overall energy market,” he added.

Capacity of upcoming renewables projects for major European IOCs and power producers. Image source: GlobalData Power Intelligence Center.

Oil and gas companies looking to transition into the renewables are making significant moves in the mergers and acquisitions (M&A) space to support their growth ambitions.

Recent months have seen Total announce a flurry of deals in the wind and solar sectors, while BP announced its entry into offshore wind with a $1.1 billion deal to partner with Equinor in US developments.

Mr Scargill said solar PV and offshore wind developments account for most of IOCs’ renewables development pipelines.

“Solar has the benefit of low costs and a short investment cycle, supporting rapid capacity build-out, while offshore wind is expected to see the fastest growth within renewables over the next decade and has the benefit of exploiting oil companies’ experience in offshore development,” he noted.

Related Articles

bp to lead and operate WA renewables and green hydrogen energy hub

Global Energy Show 2022

Tasmanian Energy Development Conference

The Australian Hydrogen Conference – West 2022

Comments

Leave a comment Cancel reply

You must be logged in to post a comment.

Latest Posts

  • Energy
  • Construction
  • Resources
  • Agriculture
24 Jun

EEC Professional Certifications to prepare Australia’s energy workforce

24 Jun

Funding to extend operations of the Australian Centre for Advanced Photovoltaics 

22 Jun

Emerging technologies like LEMs can solve Australia’s energy crisis

17 Jun

End-of-life plan needed for tens of thousands of wind turbine blades

17 Jun

Record growth in renewables but historic chance for clean energy recovery is missed, according to report

23 Jun

Cities of the future may be built with algae-grown limestone

22 Jun

Global sophisticated green building designs awarded

22 Jun

A national environmental impact standard to measure embodied carbon

15 Jun

Australian cities falling behind global cities on sustainability according to 2022 Sustainable Cities Index

14 Jun

Only timber can tackle climate change – timber and the latest construction technology

24 Jun

Farmers say food supply must come before gas export industry

23 Jun

WA to cut emissions by 80 per cent by 2030 for state utilities

21 Jun

Pathways to sustainable metal production and greening grids

20 Jun

Business leaders called on to slash Scope 3 emissions

16 Jun

Review shows positive economic outcomes in green government spending

Online Magazine

    Current Cover
  • Login
  • Subscribe

Subscribe

Subscribe to our newsletter

Our Titles

  • Home
  • Contact Us
  • Terms and Conditions
  • Privacy
© Sage Media Group 2022 All Rights Reserved.
×
Authorization
  • Registration
 This feature has been disabled
 This feature has been disabled until further notice, however you may still register
×
Registration
  • Autorization
Register
* All fields required