BP Takes First Major Step into USA Electrification

BP Takes First Major Step into USA Electrification
This investment is aligned with BP's plan to scale-up next generation mobility solutions.

BP (NYSE: BP) has announced that it has taken its first major step into electrification in the U.S. with the acquisition of AMPLY Power, an electric vehicle charging and energy management provider for fleets that operate trucks, buses, vans and light-duty vehicles.    

Under the terms of the deal, AMPLY Power will continue to operate independently as part of BP’s global portfolio of businesses, BP highlighted. Financial details of the agreement are not being disclosed, according to BP.  

BP noted that this investment is aligned with its plan to scale-up next generation mobility solutions. The company highlighted that, by 2030, it aims to nearly double earnings from its global convenience and mobility businesses, increasing from around $5 billion in 2019, while delivering returns in the range of 15-20 percent. During this time, BP is planning to grow its global network of EV charging points from around 11,000 today to more than 70,000.   

“BP is aiming to speed up electrification in the fast-growing fleet segment, which is key to lowering emissions from the transport sector - the largest contributor to greenhouse gas emissions in the U.S.,” Richard Bartlett, the senior vice president of future mobility and solutions at BP, said in a company statement.

“As we continue to invest in new forms of infrastructure and technology to serve our global fleet customers, AMPLY Power provides an ideal opportunity to build our EV business in the U.S. They bring an experienced team, a rapidly expanding customer base and user-friendly digital platform,” he added in the statement.

David Lawler, the chairman and president of BP America, said, “expanding into EV fleet charging is the latest in BP’s ongoing commitment to help drive the energy transition in the U.S.”.

“This acquisition builds on significant investments in offshore wind earlier this year in New England, onshore wind across seven states and our rapidly growing presence in solar. BP sees enormous opportunity for the U.S. to lead the energy transition, and we’re excited to help the country on its journey to net zero,” Lawler added.

Vic Shao, the founder and chief executive officer of AMPLY Power, said, “our mission at AMPLY Power is to accelerate the transition to electric-powered fleets by offering comprehensive solutions that make it easy and cost-effective for operators to use EVs”.

“Now, with support and backing from BP, we can scale our approach to reach new markets while bringing our unique expertise to BP’s broader electric fleet initiatives. BP shares our sustainability values and commitment to technological innovation, making this an opportunity to create a lasting positive impact on the environment and the economy,” Shao continued.

AMPLY Power is headquartered in Mountain View, CA, and has around 35 employees. With intelligent software and an innovative support model, the company is able to de-risk fleet electrification so operators can remain focused on their core business of moving people or goods, according to its website.

Earlier this month, BP revealed that it had acquired a 28.57 percent stake in Gasrec, which is described as the UK’s largest dual provider of bio-liquified natural gas and bio-compressed natural gas to road transport. The company builds, owns and operates biomethane refueling stations, providing renewable solutions to the heavy goods vehicle industry.

According to its website, BP wants to be a leading provider of integrated mobility solutions for a future world. BP’s site states that the company will help shape and ‎lead the emerging future of mobility through its strategy.‎

To contact the author, email andreas.exarheas@rigzone.com

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