BP 2010 Annual Report Download - page 64

Businessreview
2010 2009 2008
Wind–netratedcapacityatyear-end
 (megawatts)a774 711 432
Solar–modulesales(megawatts)b325 203 162
aN etwindcapacityisthesumoftheratedcapacitiesoftheassets/turbinesthathaveentered
intocommercialoperation,includingBP’sshareofequity-accountedentities.Theequivalent
capacitiesonagross-JVbasis(whichincludes100%ofthecapacityofequity-accountedentities
whereBPhaspartialownership)were1,362MWin2010,1,237MWin2009and785MWin
2008.Thisincludes32MWofcapacityintheNetherlandswhichismanagedbyourReningand
Marketingsegment.
b

Solarsalesarethetotalsalesofsolarmodulestothird-partycustomers,expressedinMW.
Previouslywereportedthetheoreticalcellproductioncapacityofourin-housesolarmanufacturing
facilities.Reportingsalesvolumesoperatingdatabringsusinlinewiththebroadersolarindustry.
Biofuels
BPbelievesthatithasakeyroletoplayinenablingthetransportsectorto
respondtothedualchallengesofenergysecurityandclimatechange.We
haveembarkedonafocusedprogrammeofbiofuelsdevelopmentbased
aroundthemostefcienttransformationofsustainableandlow-cost
sugarsintoarangeoffuelmolecules.BPcontinuestoinvestthroughout
theentirebiofuelsvaluechain,fromsustainablefeedstocksthatminimize
pressureonfoodsuppliesthroughtothedevelopmentoftheadvantaged
fuelmoleculebiobutanol.BPhasproductionfacilitiesoperating,orinthe
planningandconstructionphases,intheUS,BrazilandtheUK.
In2010,weacquiredVerenium’slignocellulosicbiofuelsbusiness
for$98million,providingBPwithintegratedend-to-endcapability.This
includedapilotplantandademonstrationfacilityinJennings,Louisiana,
aswellasresearchanddevelopmentfacilitiesinSanDiego,California;
lignocellulosicbiofuelstechnologyandrelatedintellectualproperty(IP);
andlignocellulosicenzymetechnologyandrelatedIP.
Theblendinganddistributionofbiofuelscontinuestobecarriedout
byourReningandMarketingsegment,inlinewithregulation.BPisone
ofthelargestblendersandmarketersofbiofuelsintheworld.
Wind
Inwindpower,BPhasfocuseditsbusinessintheUS,wherewehave
developedoneoftheleadingwindportfolios.
During2010,fullcommercialoperationscommencedatthe
125MWGoshenNorthwindfarm(BP50%)inBonnevilleCounty,Idaho.
WealsocommencedconstructionattheCedarCreek2windfarmin
Coloradoandtheprojectisexpectedtobeincommercialoperationin2011
withacapacityofaround250MW.
BPincreaseditsnetwindgenerationcapacityto774MWduring
2010,anincreaseof9%overtheprioryear.
Solar
In2010,weachievedsalesof325MW,anincreaseof60%over2009.
BPSolar’sorganization,withover900employeesworldwide,isstructured
toservetheresidential,commercial,andutilitymarketswithsalesand
marketingofcesinmajormarketsaroundtheworld.Ourjointventure
manufacturingfacilitiesarelocatedinXi’an,ChinaandBangalore,India.In
March,BPSolarannouncedtheclosureofmanufacturingatitsFrederick
facility,inMaryland,US,asitmovesitsmanufacturingtolower-cost
locations.BPSolarwillmaintainitsUSpresenceinsalesandmarketing,
researchandtechnology,projectdevelopment,andkeybusinesssupport
activities.Insupportofourmanufacturingrestructuring,wehavesigneda
numberofstrategiccellsupplyagreementswithsuppliers,including
JASolarHoldingsCo.LtdandHareonSolarTechnology,providingBPSolar
withaccesstoaround200MWofmono-crystallineandmulti-crystalline
solarcellsin2011.
Carboncaptureandstorage
BPhasplayedaleadingroleinthecarboncaptureandstorage(CCS)
industryformorethan10years,andtodayfocusesondemonstration
projectsandacontinuingprogrammeofresearchandtechnology
development.
InAlgeria,wearemovingintoPhase2ofourjointindustryproject
thatmonitorstheCO2injectionandstorageoperationattheInSalahgas
eld.WithourpartnersSonatrachandStatoil,wehavebeeninjectingupto
1milliontonnesofCO2ayearsince2004,demonstratingsecuregeological
storagethroughacomprehensivemonitoringprogrammethatissubjectto
independentacademicreviewbyascienticadvisoryboard.
Since2007,wehavebeendevelopingtheHydrogenEnergy
California250MWpowerprojectwithCCSwithourpartnerRioTinto.The
projectiscurrentlyinitsfeasibilityengineeringdesignphase.
Separately,the400MWHydrogenPowerAbuDhabiprojectwith
CCSawaitsfurtherdecisions,includingarrangementsforCO2
transportationandstorage.TheprojectisajointventurebetweenBP(40%)
andMasdar(60%).
Shipping
Wetransportourproductsacrossoceans,aroundcoastlinesandalong
waterways,usingacombinationofBP-operated,time-charteredand
spot-charteredvessels.AllvesselsconductingBPactivitiesaresubjectto
ourhealth,safety,securityandenvironmentalrequirements.Theprimary
purposeofourshippingandcharteringactivitiesisthetransportationofour
hydrocarbonproducts.Inaddition,wemayusesurpluscapacityto
transportthird-partyproducts.
Internationaleet
Thesizeofourmanagedinternationaleethasnotchangedsince2009.
Attheendof2010,wehad54internationalvessels(37medium-sizecrude
andproductcarriers,fourverylargecrudecarriers,oneNorthSeashuttle
tanker,eightLNGcarriersandfourLPGcarriers).Alltheseshipsare
double-hulled.OftheeightLNGcarriers,BPmanagesoneonbehalfofa
jointventureinwhichitisaparticipant.
Regionalandspecialistvessels
InAlaska,weretainaeetoffourdouble-hulledvessels.OutsidetheUS,
wehave14specialistvessels(twodouble-hulledlubricantsoilbargesand
12offshoresupportvessels).
Time-chartervessels
BPhas84hydrocarbon-carryingvesselsabove600deadweighttonneson
time-charter,allofwhicharedouble-hulled.Allthesevesselsparticipatein
BP’sTimeCharterAssuranceProgramme.
Spot-chartervessels
BPspot-chartersvessels,typicallyforsinglevoyages.Thesevesselsare
alwaysvettedforsafetyassurancepriortoeachuse.
Othervessels
BPusesvariouscraftsuchastugs,crewboatsandseismicvesselsin
supportofthegroup’sbusiness.Wealsousesub-600deadweighttonne
bargestocarryhydrocarbonsoninlandwaterways.
62BPAnnualReportandForm20-F2010