BP claims EV charging “on the verge” to be more profitable than gas

Oil giant BP claims the use of its BP electric chargers for electric vehicles is “on the verge” of being more profitable for the company than filling a combustion-powered car with gas. Once that happens, it could mark a major turning point for electric cars and “big oil”.

The business of EV charging – filling up a car with electrons instead of petroleum-based gas or diesel – has always been a loss leader for oil companies like Shell and BP, which are apparently being dragged into the electrical future kicking and screaming. However, that may be about to change, as BP’s latest figures show that its UK-based “BP pulse”[ads1]; network of fast-charging batteries for batteries, on a marginal basis, is approaching the profitability levels they see by refueling. And the division can be profitable alone by 2025.

“If I think of a fuel tank versus a fast charge, we are approaching a place where the business base for fast charging is better than it is on (fossil) fuel,” BP chief of customers and products, Emma Delaney, told Reuters.

Delaney did not reveal exactly when BP expects profits from charging electric cars to overshadow traditional fuel profits, but the company reported that electricity sales for charging electric cars grew by 45% from the second quarter to the third quarter of 2021, alone. “Overall, we see a huge opportunity in fast charging for consumers and businesses, as well as fleet services more generally,” Delaney explains. “This is where we see growth, and where we see margins.”

BP sees rapid growth for fast charging

The London-based company (BP = British Petroleum) plans to grow its electric car charging business in the coming years from the current 11,000 stations to as many as 70,000 charging points by 2030 – and, unlike rival energy company, Shell, which has its own electric car charging scheme in play, BP will focus on fast DC charging (in the range 50 – 150 kW).

“We have made a choice to really go for high-speed charging on the go – instead of slowly charging lampposts, for example,” Delaney said.

It is worth noting that BP began investing in the Israel-based, fast-charging technology company StoreDot as far back as 2018. It remains to be seen whether the company’s planned fast-charging expansion will utilize new technology from that source.

Electrek’s Take

Until now, the general consensus within the “electricity bubble” has been that the large oil companies have been against electrification, as the proliferation of electric cars seems to threaten one of their core business models. While that may be true in theory, if these companies are able to exploit their existing – and frankly very visible footprint – in a way that not only promotes the cause of electrification, but is also more profitable than selling gas. in practice?

Then the game is facing internal burns.

Source | Photos: BP, via Reuters.

FTC: We use revenue-generating automatic affiliate links. More.

Subscribe to Electrek on YouTube for exclusive videos and subscribe to the podcast.

Source link

Back to top button