POWER September 2020 - 9

GLOBAL MONITOR
development team and early works scope along with technical
support during both technical and commercial negotiations.
The project, with an investment value of more than $150 million,
has executed an engineering, procurement, and construction
agreement with the consortium of PowerChina and SGRE.
" We have big ambitions to support the growth of renewable
energy in Vietnam by not only bringing investor capital in the
country but also international-level industry expertise and technology.
Modern Energy Management is instrumental in the development
of our wind farm in Vietnam because of its strong
track record in Southeast Asia, " said Ti Chee Liang, chairman of
Janakuasa Renewables.
Nathan Schmidt, head of Asia for CFM, said MEM's " understanding
of the risks related to intertidal wind projects and
achieving the schedule to enable eligibility for the Vietnam feedin
tariff was critical to our investment. " Lars Lund, MEM's project
director, said, " Intertidal wind projects are technically complex, "
adding that such installations are " presenting unique challenges
and risks. There are few firms in the market that have the experience
to design and build for construction in these conditions. "
-Darrell Proctor is associate
editor for POWER.
Big Oil Makes Concerted Push into Power
BP made headlines in early August when it announced it wants
to develop about 50 GW of net renewable generating capacity
by 2030-a 20-fold increase from the 2.5 GW deployed in
2019-as part of a new strategy to pivot from an international
oil company to a customer-oriented integrated energy company.
The company's move is the latest in a string of similar
efforts by global oil and gas companies to redirect more investments
into the power sector, low-carbon technologies, and mobility
in response to climate concerns, investor activism, and an
oil price rout that has been intensified by the pandemic.
On the heels of its February commitment to net-zero carbon
emissions by 2050 and June-announced $5 billion divestment
of its global petrochemicals business to UK-based chemicals
company INEOS, BP said on Aug. 4 that it would cut its oil and
gas output by 40% by 2030 and spend $5 billion a year on lowcarbon
projects. Along with its 50-GW renewables goal, the
company wants to increase its production of bioenergy from
22,000 barrels per day (b/d) to more than 100,000 b/d. It will
also seek early positions in hydrogen and carbon capture, utilization,
and storage (CCUS). It plans, for example, to ensure
its hydrogen businesses have grown to have a 10% share of
core markets by 2030. Finally, it will increase its stake in electric
vehicle (EV) charging points from 7,500 today to more than
70,000 by 2030 by cultivating energy partnerships with 10 to
15 major cities around the world.
BP's focus on renewables echoes that of several other " Big
Oil " majors. As BP Executive Vice President of Strategy and
Sustainability Giulia Chierchia explained on Aug. 4, the move responds
to a " backdrop of uncertainty, " where demand for fossil
fuel could plunge by 75% in a " net-zero " scenario. " The world
is electrifying at pace and we believe that renewables will be a
clear winner, " she said. " Under the 'rapid transition' scenario,
global electricity demand increases 80% by 2050. Renewables
account for more than 40% of primary energy, a near tenfold
increase. Even in a 'business as usual' scenario, renewables
still capture 90% of net energy growth. " BP generally expects
that as the world electrifies, its uptake of renewables (Figure
2) and hydrogen will grow while " supply will become more
local, more complex and will require more integration across
September 2020 | POWER
2. BP subsidiary Lightsource BP in 2016 launched a 6.3-MW floating
solar installation on the surface of the Queen Elizabeth II reservoir just
outside of London. Courtesy: BP
multiple energy sources to provide stability, maximize system
efficiency and transition, " she said.
Eni Goes Heavy on Renewables, CCS. BP's announcement
came just days after Italian oil giant Eni affirmed its long-term
strategy to install more than 55 GW of new renewables by
2050, and up to 10 GW by 2030. Eni also communicated a strategic
climate change-oriented corporate overhaul in February,
and as part of its ambitions to cut 80% of net greenhouse gas
(GHG) emissions by 2050, it is banking on large-scale CCUS
investments to help clean up increasing gas production, which
it expects to represent up to 60% of its total production mix in
2025 and as much as 85% in 2050.
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POWER September 2020

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