BP seeks alternative energy payback

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http://www.ft.com/cms/s/0/ab49dcaa-e56f-11dc-9334-0000779fd2ac.html

BP seeks alternative energy payback

By Ed Crooks

Published: February 27 2008 20:22 | Last updated: February 27 2008 20:22

BP is looking for ways to realise the value of its alternative energy investments, which the oil and gas group believes are worth up to $7bn with the potential for rapid growth.

In a presentation to investors and analysts in London on Wednesday, Tony Hayward, the chief executive who took over last year, said: “What we will be doing over the course of the year will be looking at ways of realising that value for shareholders because none of us believes that there is very much of that, if anything, in our share price today.”

BP said that did not mean selling the businesses focused on solar and wind power but could involve selling stakes, joint ventures and other partnerships.

Lord Browne, previous chief executive, was criticised for adopting the “beyond petroleum” slogan, seen by some as a public relations stunt that distracted the company from its core oil and gas business. Mr Hayward has retained it, however, and stepped up investment in renewables and low-carbon energy.

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