BP foretells that renewable growth will surpass that of fossil fuels

According to BP PLC (BP/) wind power, solar electricity and biofuels consumption will experience a much faster growth during the next 20 years than the demand for fossil fuels; the driving force behind this is that nations are seeking to meet rising energy needs without adding to their carbon emissions.

During BP’s annual outlook the company said that global renewables consumption will increase by 8.2 per cent a year through to 2030, outperforming the annual increase of 2.1 per cent gain for natural gas, which is said to be the fastest-growing fossil fuel, as the total energy demand for power, transport and heating is predicted to expand by 1.6 per cent every year.

BP explained, “The growth of global energy consumption is increasingly being met by non-fossil fuels,” “Renewables, nuclear and hydro together account for 34 per cent of the growth; this aggregate non-fossil contribution is, for the first time, larger than the contribution of any single fossil fuel.”

According to Bloomberg New Energy Finance, new investment in renewable energy has increased to a record $260 billion in 2011 compared to the $243 billion in 2010, which was the first year that new money rolled into wind and solar generation and beat funds for new oil-, coal- and gas-fired output. Governments all around the globe have subsidized the extension of cleaner power production in order to satisfy energy demand while curtailing polluting emissions.

“It is in the power sector where the greatest changes in the fuel mix are expected, renewables, nuclear and hydroelectric should account for more than half the growth in power generation.” BP also said.

BP, whom is Europe’s largest oil producer after Royal Dutch Shell Plc, told their staff during 2011 that it is extiting from the solar power industry after 40 years, reason being that it’s no longer profitable. The company’s solar division will be wound down over several months, BP Solar Chief Executive Officer Mike Petrucci said in an internal letter in December 2011.

According to the company, this exit will have no influence on BP’s other renewable-energy units.  BP has been expanding its biofuels business, and in September 2011 it said it spent $96 million on two Brazilian sugar-cane processors.

They furthermore stated that biofuels will account for about 7 per cent of energy use for transport by 2030. Biofuels and other renewables combined will make up about 6.3 per cent of total energy consumption in 2030, up from 1.8 per cent in 2010.


About Insight group PLC

About Us Insight Group PLC is a leading private investment company based in the thriving city of Cape Town, South Africa. With offices also located in Mozambique, Gambia and the financial hub of Hong Kong; Insight Group PLC is perfectly positioned to provide clients with investment opportunities and expertise unsurpassed in today's marketplace. We take great pride in our ability to provide our clients with quantifiable confidence in everything we do. Our ability to achieve this and meet the varying needs of all of our clients stems from the fifty years of experience in the financial, media, commodities and property sectors of those leading the organisation's success. Chairman of Insight Group PLC, Alfonso Rivera Revilla, is a respected Accountant and Lawyer in Europe with over 25 years of experience in working with high-end investors who want to get the most out of their personal finances and their businesses: "In these difficult economic times, it is critical to protect your wealth. Traditional strategies, such as high interest rate accounts, no longer give people a worthwhile return. At Insight Group PLC, we're excited about the fact we offer investment opportunities that other's can't - including the big banks and funds. We personally seek the most competitive investment options for our clients and put them in touch with our industry experienced and respected Wealth Management Specialists (click here if you'd like to work for us). "We are confident in everything we do, contact us to share in that confidence and to reap the rewards." View all posts by Insight group PLC

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