(Reuters) - BP said on Tuesday it aims to accelerate its goal of achieving net-zero emissions by 2050 as Britain's energy giant seeks to move away from fossil fuels and boost its renewable energy capacity.
The company began the biggest makeover in its history two years ago and now intends to halve its operational emissions by 2030, up from a previous target of 30-35 percent.
BP also plans to achieve net zero life-cycle emissions of the energy products it sells by 2050 or earlier, compared to a 50% reduction in its emission intensity.
"In our view, the needs and role of integrated energy companies (IEC) have never been clearer," CEO Bernard Looney said in a statement.
The oil giant expects its share of capital spending in transition growth businesses such as electric vehicle charging, renewables and hydrogen to increase to more than 40 percent by 2025 and around 50 percent by 2030, with the goal of earning $9 billion to $10 billion from these areas by 2030.
BP sees renewables and hydrogen as an engine of transitional growth, saying it is expected to develop 20 gigawatts (GW) of renewable energy capacity by 2025 and 50 GW by 2030, with confidence in achieving an 8-10% return on investment.
"The reputation of renewable energy companies has underperformed over the past year, and it remains to be seen whether companies like BP can generate returns from these new business areas," analysts at Third Bridge said.
The group said it plans to maintain core profits from elastic hydrocarbons at about $33 billion per year by 2025 and between $30 billion and $35 billion by 2030.
