• 5 minutes 'No - Deal Brexit' vs 'Operation Fear' Globalist Pushback ... Impact to World Economies and Oil
  • 8 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 12 minutes Will Uncle Sam Step Up and Cut Production
  • 11 hours A legitimate Request: France Wants Progress In Ukraine Before Russia Returns To G7
  • 4 mins China has invested btw $30 - $40 Billon in Canadian Oil Sands. Trump should put 10% tariffs on all Chinese oil exported into or thru U.S. in which Chinese companies have invested .
  • 4 hours Danish Royal Palace ‘Surprised’ By Trump Canceling Trip
  • 9 hours Used Thin Film Solar Panels at 15 Cents per Watt
  • 3 hours US to Drown the World in Oil
  • 19 hours Recession Jitters Are Rising. Is There Reason To Worry?
  • 13 hours IS ANOTHER MIDDLE EAST WAR REQUIRED TO BOLSTER THE OIL PRICE
  • 5 hours Iran Is Winning Big In The Middle East
  • 3 hours With Global Warming Greenland is Prime Real Estate
  • 4 hours Tit For Tat: China Strikes Back In Trade Dispute With U.S. With New Tariffs
  • 8 hours Strait Of Hormuz As a Breakpoint: Germany Not Taking Part In U.S. Naval Mission
  • 18 mins Trump cancels Denmark visit amid spat over sale of Greenland
  • 10 hours LA Solar Power/Storage Contract
  • 8 hours Philadelphia Energy Solutions seeks to permanently shut oil refinery - sources
Alt Text

The Billion Dollar Oil Hedge That May Never Happen

Worries about the U.S., China…

Alt Text

Is China Blocking Vietnam’s Access To $2.5 Trillion In Oil & Gas?

Washington accused China of interfering…

Alt Text

Investors Are Ditching High-Yield Shale Bonds

Investors in high-yield shale bonds…

Haley Zaremba

Haley Zaremba

Haley Zaremba is a writer and journalist based in Mexico City. She has extensive experience writing and editing environmental features, travel pieces, local news in the…

More Info

Premium Content

BP Teams Up With Tesla In Energy Storage Project

One of the world’s biggest oil industry supermajors has teamed up with the global leader in electric cars in a new business venture and pilot project. British Petroleum (BP) has joined forces with Tesla to build the oil company’s first battery storage project at one of its U.S. wind farms. This move comes as part of a bigger foray into renewables, a strategy becoming common among supermajors trying to stay ahead of the curve in a rapidly changing energy landscape.

Wind farming is notoriously finicky when it comes to supply, and large-scale batteries like the one Tesla will be providing in the pilot project at BP’s South Dakota Titan 1 wind farm will help solve the volatility of the renewable power source. These Powerpack batteries are able to store extra power when winds are high, giving wind power a much-needed commercial edge. Tesla will be installing a 212 kilowatt (KW)/840 kilowatt hour battery (roughly 4 Powerpacks).

Titan 1 is just one of 13 wind farms that BP has installed across the U.S., amounting to a total capacity of over 2 gigawatts. In addition, the supermajor invested nearly $300 million in solar energies last year, and acquired a 43 percent stake in Lightsource, Europe’s largest solar development company. It has also been reported that BP is in negotiations with auto companies to install EV chargers at BP gas stations.

The pilot program with Tesla is just the first stage of a long learning curve to maximize the output of BP’s wind farms. The Powerpack being installed is a small one and will be an opportunity to improve battery storage technologies for future use at BP’s other wind and solar farms. For Tesla, the Powerpack is just one of many lucrative and innovative contracts the company has secured recently from their booming energy division. Related: How Significant Is WTI’s Breakout?

BP is not the first oil company to take notice of a trend away from fossil fuels, and they’re not the first company to start investing in energy storage technologies like the Tesla Powerpacks. BP is following in the footsteps of several other oil companies such as Norwegian Statoil and VPI Immingham, owned by Vitol. Statoil is planning to implement battery system to work in conjunction with its Hywind floating wind farm, located off the shore of Scotland, while VPI Immingham has already developed a 50-megawatt battery portfolio connected to the grid in Britain.

BP is undergoing a slow but steady move toward what they call a low-carbon future, exploring alternative energies in a marketplace that is moving more and more rapidly away from gas guzzlers. BP has stated that they estimate that renewables may account for up to 10 percent of global energy demand by 2035. The demand currently stands at 4 percent worldwide.

On Monday, in a press release titled “Advancing the Energy Transition” BP announced that the company plans to achieve a zero percent increase in its carbon footprint over the next seven years by lessening the emissions of oil and gas rigs. They’ve also previously pledged to invest $500 million annually into low-carbon technologies. Related: New Sanctions On Russia Could Lift Oil Prices Further

Despite the latest news out of BP and press releases about low-carbon alternatives, many environmental experts are just not buying it, and they’re making that opinion public. Accusing BP of “greenwashing”. Some critics have even pointed out that supermajors like Shell, which has been leading the pack in terms of greening the industry, have made pledges to reduce the burning of oil and gas, BP has made no such goals. BP has promised not to increase their carbon footprint, while Shell plans to decrease theirs by half.

As Tom Burke, chairman of environmental think tank E3G and former BP adviser put it, “Who cares about operational emissions? The problem is they have nothing to say on their product. This is a 20th century response to a 21st century problem.”

Is BP turning over a new, green leaf? Or is it just too little, too late?

By Haley Zaremba for Oilprice.com

More Top Reads From Oilprice.com:




Download The Free Oilprice App Today

Back to homepage


Leave a comment
  • Scottish Scientist on April 19 2018 said:
    Tesla's battery is too small to make good use of the wind energy generated daily from a 25 MW wind farm - about 150 MWh on average, but it depends on the capacity factor.

    "840 kilowatt hours" is only 0.84 MWh, or only about 8 minutes of average wind energy generation from that 25 MW wind farm, which isn't of much use for keeping the lights on when the wind is becalmed and Tesla should be ashamed of such poor performance.

    What's needed to deliver power on demand from the wind, 24 hours a day, 7 days a week, 52 weeks a year, is an energy storage capacity of the order of 80 to 100% of one day's average wind energy generation.

    It is really embarrassing when respectable companies start fiddling about with ridiculously small batteries that are as much use as painting "go faster" stripes on the wind turbines for those windless days.

    Batteries = Flat-agains. Come off it Tesla. That don't impress me much.
    It is time to get serious about grid energy storage.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play