BP has outlined plans to save approximately $200 million by focusing on a select number of hydrogen projects and selling its US onshore wind assets. The UK-based energy giant shared in its third-quarter report that it will narrow its hydrogen initiatives to between five and ten key projects and continue the sale of its 1.7GW US wind portfolio. This restructuring is part of BP's broader objective to achieve $2 billion in cost savings by the close of 2026.
Chief Financial Officer Kate Thomson noted that the strategy is beginning to yield financial benefits, particularly in renewables and hydrogen. “Across renewables and hydrogen, we expect to benefit from around $200 million reduction in annual cash costs, as a result of focusing our portfolio,” Thomson stated.
BP has also completed its acquisition of BP Lightsource, solidifying a renewables portfolio totaling 46.8GW. This figure is down by 11.5GW as a result of its more focused approach to hydrogen opportunities.
In terms of financial performance, BP posted $2.3 billion in underlying profits for the third quarter, slightly up from $2 billion in the previous quarter, reflecting the early financial impacts of its strategic realignment.
