BP is closing its low-carbon mobility team as part of its strategy to refocus on its traditional oil and gas operations. This move marks another step back from the company’s five-year journey to diversify its energy portfolio.
The low-carbon mobility unit was tasked with creating electric, hydrogen, and other low-emission vehicle solutions, especially for trucks. However, as CEO Murray Auchincloss tightens the company’s focus on fossil fuels, the team is being disbanded due to concerns over its commercial viability, according to senior executive Martin Thomsen. He informed employees that activities from this unit would be absorbed into other business areas.
In February, Auchincloss revealed plans to cut 70% of BP’s spending on green energy initiatives and scrapped a previous commitment to become a significant player in renewable energy. This shift aligned with pressure from Elliott Management, a US activist hedge fund that acquired nearly 5% of the company and called for major changes.
Thomsen noted that the energy transition was proceeding more slowly than expected, which contributed to the decision. He highlighted that projects in low-carbon mobility were taking longer to develop and required substantial investment during a time when overall funding for the division was being cut.
During a staff call, Thomsen reportedly stated, “We had a view of low carbon that didn’t happen,” emphasizing a return to BP’s traditional focus on oil, gas, and conventional retail services like petrol and diesel.
Thomsen oversees emerging markets within BP’s customer division and has taken on additional roles, including heading BP Pulse, the company’s global electric vehicle charging business. Recent leadership changes had already reduced the size of the low-carbon team from around 30 people to just nine before the closure announcement.
BP confirmed the team’s closure, indicating that integrating its functions into broader business units would be more efficient. However, the company reassured that the decision would not impact BP Pulse, which will continue to expand its electric vehicle charging operations in the UK, Germany, the US, and China, along with pursuing joint ventures in India, Spain, and Portugal.