Published Date : Jun 29, 2018
Several oil and gas giants are making collaborations with the players of electric vehicle (EV) market to pour in investments into the technology and tap into its vast potential. The foray into the EV market is stimulated by the marked shift automakers and consumers are making from fossil fuel-based vehicles to renewable options. The transition to EV is being facilitated by the efforts of these energy players to spend on grid edge technologies, the emerging paradigm in the global EV market. Unarguably, their growing thrust toward more charging stations will cut the mustard. A British oil and gas giant BP plc, has announced on June 28, 2018 that it has agreed to buy electric vehicle charging company Chargemaster for $170 million. The British energy major seeks to leverage the vast network of the leading charging firm in the home turf to bolster its own capacity. This will also enable BP to deploy ultra-fast chargers across several retail station across the U.K.
Acquisition aimed toward Expanding Fuel Choices for BP Customers
The move is motivated by recent initiatives by numerous energy giants in several countries of Europe to meet the needs of burgeoning number of electric vehicles on road. Among the key players have been Royal Dutch Shell and Total S.A. BP is not only riding on the wave but with this acquisition it intends to expand the fuel choices for its customers. In particular, it will roll out 150 Kw chargers in as many as 1,200 petrol stations across the U.K. over a span of 12 months.
Oil & Gas Companies’ Strategic Shift Motivated by Inclination for Renewable Fuel Options
There have been several charging infrastructure acquisitions in Europe this year. However, what sets this acquisition apart is the fact that this is for the first time an energy major has planned to make the purchase. According to experts, now that the prices of chargers have declined substantially in recent years, the lack of a robust charging infrastructure is being pitted as the key constraint hindering the mass-market of EVs. In large part, this has led several energy and oil and gas companies to recalibrate their strategic goals, with oil extraction taking a backseat at least for now. BP with this acquisition is treading the path toward get a leadership position in the EV technology and infrastructure.