November 10, 2008

BP Drops Out Of UK Renewables Plan, Focuses On U.S.

BP announced it will drop out of the UK government’s competition to build a prototype power station that will capture and store its CO2 emissions. Instead the company will focus the majority of its $ 8 billion renewables spending program on its wind power business in the U.S., “where government incentives for clean energy projects can provide a convenient tax shelter for oil and gas revenues,” the Guardian reports.

The move comes as the U.S. “political pastures just got greener,” writes Keith Johnson at The Wall Street Journal. President-elect Barack Obama has pledged to spend $150 billion over 10 years to kick start a renewable energy revolution.

Shell recently sold off its stake in the London Array project, citing the same reasons as BP. The company said the economics of UK wind were poor compared to those onshore in the U.S.

The U.S. wind energy industry installed 1,389 megawatts in the third quarter, bringing to 4,204 MW the total of wind power projects completed in what is expected to be another record year.

The British Department for Transport has told the wind industry that shipping operators fear offshore wind farms may cause hazards and increase emissions.

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