BP - that's British Petroleum - is investing in a massive electric vehicle charging network in China, in partnership with a ride-hailing company called Didi Chuxing. The oil company will create additional charging hubs for both Didi users (there are over 550 million, using 600,000 EVs) and public users. Many hubs will also include convenience stores - another great non-oil income generator for petrol companies.
"As the world's largest EV market, China offers extraordinary opportunities to develop innovative new businesses at scale," says Tufan Erginbilgic, BP's downstream chief executive.
"We see this as the perfect partnership for such a fast-evolving environment. The lessons we learn here will help us further expand BP's advanced mobility business worldwide, helping drive the energy transition and develop solutions for a low carbon world." BP and Didi already have a pilot site in Guangzhou, the capital of Guangdong province, with 10 fast-charging units ranging from 60-120kW. The site will be become part of the new joint venture once the wider network is launched. About 50 per cent of the world's pure EVs are currently on the roads of China.
While charging at home is common in other countries (including New Zealand), by 2030 about 80 per cent of EV charging in China is expected to be done at retail sites of the type being launched by BP/Didi. "Petroleum" is in the company name, but BP has embarked on an aggressive programme of investment in alternative energy. In July 2018 it put US$10 million into the NIO Capital US Dollar Fund, which is working on opportunities around China's New Energy Vehicle (NEV) infrastructure. Also in 2018, BP completed its aquisition of Chargemaster, the largest EV charging network in the UK. It has also invested in StoreDot, a company that develops battery technology suitable for fast-charging.
GXY Price at posting:
$1.22 Sentiment: Buy Disclosure: Held
