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BP is closing its low carbon mobility team with the latest and latest retreats in the energy major.
The unit was responsible for developing electricity, hydrogen and other low-emission solutions for vehicles, especially trucks. This is the recent casualty of CEO Murray Auchinross’ plan to refocus BP on its legacy oil and gas business.
Senior BP executive Martin Thomsen told staff Wednesday that it is no longer “commercially viable” for BP to justify the dedicated teams of the activity. The rest of the activity will be allocated to other parts of the business, he added.
In February, Auchicloss announced it was scrapping plans to become a renewable energy player five years ago and cut spending on green energy by 70% in order to increase returns and raise BP’s stock price. The strategic shift followed news that US activist hedge fund Elliott Management had acquired nearly 5% stake in BP, driving radical change.
Thomsen emailed staff on Wednesday: “You know, as Murray is very clear, we can see that the energy transition is moving at a slower pace than expected.”
The low-carbon mobility project was being developed “slower” and required “more investments” when capital available in the wider sector was reduced, he added.
On the same day, he was more direct. “We had a low-carbon view that never happened,” he said. “We need to go back to old BP (more oil and gas), old-fashioned retail – petrol, diesel.”
Tomsen is currently Senior Vice President of BP’s Customer and Products division, which manages BP’s global network of gas stations. He recently promoted BP’s global electric vehicle charging business, BP Pulse and its retail network to lead both that in Europe, following the departure of several senior leaders.
Former Boots and Tesco executive Tracey Clements resigned in January as head of BP’s European Retail Network for three years at the company. She was replaced by Richard Bartlett, CEO of BP Pulse. Bartlett then announced his own resignation last month.
BP has confirmed its decision to gradually close the team.
“As we concentrate downstream business and activities, we don’t think we need to maintain an independent, dedicated team to consider these future options,” he said. “The activities will be integrated into our business.”
BP added that this decision will not affect the BP pulse. The company said it will expand its EV charging operations in four major markets: the UK, Germany, the US and China, with a focus on growing through joint ventures in India, Spain and Portugal.
