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BP logos are seen at a BP petrol and diesel filling station southeast of London on June 15, 2020.
BEN STANSALL | AFP | Getty Images

LONDON — Oil and gas giant BP beat second-quarter earnings expectations on Tuesday, while expanding its dividend and share buyback program.

The U.K.-based energy major said it will buy back $1.4 billion of its own shares in the third quarter on the back of a $2.4 billion cash surplus accrued in the first half of the year.

It also anticipates buybacks of around $1 billion per quarter and an annual dividend increase of 4% through 2025, based on an estimated average oil price of $60 per barrel.

The energy major posted full-year underlying replacement cost profit, used as a proxy for net profit, of $2.8 billion. That compared with a loss of $6.7 billion over the same period a year earlier and $2.6 billion net profit for the first quarter of 2021.

Analysts polled by Refinitiv had expected second-quarter net profit of $2.06 billion.

The results reflect a broader trend across the oil and gas industry as energy majors seek to reassure investors they have gained a more stable footing amid the ongoing coronavirus pandemic. The British-Dutch multinational Royal Dutch Shell, France’s TotalEnergies and Norway’s Equinor all announced share buyback schemes last week.

Share prices of the world’s largest oil and gas majors are not yet reflecting the improvement in earnings, however, and the industry still faces a host of uncertainties and challenges.

Shares of BP are up almost 15% year-to-date, having collapsed roughly 47% in 2020.

BP’s financial results come after a period of stronger commodity prices. International benchmark Brent crude futures rose to an average of $69 a barrel in the second quarter, up from an average of $61 in the first three months of the year.

Oil prices have rebounded to reach multi-year highs in recent months and all three of the world’s main forecasting agencies — OPEC, the International Energy Agency and the U.S. Energy Information Administration — now expect a demand-led recovery to pick up speed in the second half of the year.

It comes after a 12 month period which BP has described as “a year like no other” for global energy markets.

In its benchmark Statistical Review of World Energy, published on July 8, BP said that over the past seven decades the company had borne witness to some of the most dramatic episodes in the history of the global energy system. These crises included the Suez Canal crisis in 1956, the oil embargo of 1973, the Iranian Revolution in 1979 and the Fukushima disaster in 2011.

“All moments of great turmoil in global energy,” Spencer Dale, chief economist at BP, said in the report. “But all pale in comparison to the events of last year.”

The ongoing Covid-19 crisis triggered a historic oil demand shock in 2020, with Big Oil companies enduring a brutal 12 months by virtually every measure. The pandemic coincided with falling commodity prices, evaporating profits, unprecedented write-downs and tens of thousands of job cuts.

Analysts told CNBC ahead of the latest batch of second-quarter earnings that while energy companies were likely to try to claim a clean bill of health, investors were expected to harbor a “tremendous degree” of skepticism about the long-term business models of oil and gas firms. This was predominantly a result of the deepening climate emergency and the urgent need to pivot away from fossil fuels.

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BIDIRECTIONAL Act introduced in US Senate to promote electric school buses feeding grid

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BIDIRECTIONAL Act introduced in US Senate to promote electric school buses feeding grid

A new bill introduced Friday by US Senator Angus King of Maine could unlock the true potential of electric school buses and provide stability to communities in need. The BIDIRECTIONAL Act would “create a program dedicated to deploying electric school buses with bidirectional vehicle-to-grid (V2G) flow capability.”

Zero-emission electric school buses are being deployed nationwide as state leaders and school districts look to protect the children and communities they vow to serve. New information shows school districts that replace just one diesel school bus with an electric one can reduce toxic emissions by 54,000 pounds a year.

However, the benefits of electric school buses don’t stop there. The massive batteries they utilize also make perfect energy storage devices. Several automakers and charging companies are experimenting with vehicle-to-grid (V2G) technology that enables vehicles to send energy back to the grid.

Manufacturers of electric pickup trucks (like the Ford F-150) and other EVs have dived into bi-directional charging, but this technology makes even more sense for electric school buses because they have large batteries that sit most of the day. To illustrate this point, Thomas Built Buses partnered with Proterra to show two electric school buses can send 10 MWh total back to the grid, enough to power around 600 homes.

Senator King wants to capitalize on this ability with the BIDIRECTIONAL Act to promote the widespread deployment of electric school buses with V2G capability to improve community stability.

electric-school-buses-v2g-1
Electric school bus with V2G capabilities Source: Proterra

The BIDIRECTIONAL Act is designed to accelerate adoption of EV school buses while using them for more than just a ride to school.

According to Senator King, the BIDIRECTIONAL Act will:

  • Establish a Department of Energy (DOE) program to roll out electric school buses designed with V2G capabilities in communities that need them most.
  • Require the DOE to report on current V2G initiatives (such as Thomas Built and Proterra) while also requiring electricity providers to consider bi-directional integration.

Senator King commented on the initiative, stating:

Vehicle-to-grid school buses are another common sense tool that can help to create a reliable grid, promote clean energy, and cut costs for local towns and school districts.

Adding:

The BIDIRECTIONAL Act will assist school districts across Maine and America transition to electric buses and make sure these vehicles provide greater stability to their communities. Combined with electric bus investments in the Inflation Reduction Act, this will be an important step towards unlocking America’s clean energy future. It’s a simple, win-win bill and I hope it can get bipartisan support across Congress.

Several major electric school bus makers and other organizations are backing the bill, such as Blue Bird, Highland Electric, Lion Electric, Nuuve, Proterra, and Xcel Energy.

Electrek’s Take

Electric school buses with V2G are a no-brainer. Not only will they reduce greenhouse gas emissions, protecting the communities they serve, but they can also play a key role in providing energy stability to communities in need.

The Environmental Protection Agency (EPA) just announced it would be nearly doubling EPA clean school bus program funding to $965 million in its initial round . Federal funding is a huge first step, but strong state leadership is also necessary if these clean machines are going to become widely adopted. Virginia, for example, just surpassed 500,000 electric school bus miles driven thanks to a state initiative to roll out 13,0000 electric school buses in 2019. They now have the nation’s second largest fleet of electric school buses.

I believe Senator King is wise in proposing this bill. I truly believe electric school buses have unlimited potential waiting to be unlocked, and the BIDIRECTIONAL Act can do just that.

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Could offshore wind sites host edible seaweed farms? The Swedes think so

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Could offshore wind sites host edible seaweed farms? The Swedes think so

Stockholm-headquartered renewable energy developer OX2 has signed letters of intent with Swedish edible seaweed companies Nordic SeaFarm and KOBB to explore the possibility of seaweed farming at one of OX2’s offshore wind farms.

Seaweed and offshore wind

OX2’s Galatea-Galene huge 1.7 gigawatt offshore wind farm will be sited off Halland, a county on the western coast of Sweden. It’s named after two Greek sea nymphs, Galatea and Galene, and consists of two sub-areas around 15.5 miles (25 km) outside the cities of Falkenberg and Varberg.

Galatea-Galene is expected to consist of up to 101 wind turbines and generate around 6 to 7 terawatt-hours of clean electricity per year. That’s the equivalent of the average annual electricity consumption of more than 1.2 million Swedish households. (There are 4.8 million households in Sweden, for perspective.)

This offshore wind farm will be developed in a single phase. Construction is expected to commence in 2028 and enter into commercial operation in 2030.

Simon Johansson, CEO of Nordic SeaFarm, and Benjamin Ajo, chairman of the board of KOBB, said in a joint statement [via Offshorewind.biz]:

We see great opportunities, in collaboration with both the fishing industry and the wind power industry, to both maintain and create new jobs when we investigate the possibilities of creating a new industry in Sweden in the form of large-scale aquaculture.

Developing the national food supply while [offshore wind] farms contribute to stopping the negative effects of climate change are more positive aspects.

All seaweed needs to grow is saltwater and sunlight. It’s a superfood that’s rich in vitamins, minerals, fiber, and antioxidants, and particularly high in iodine, so it’s very nutritious. (Note that crispy seaweed in Chinese restaurants is actually cabbage.)

It can be used to wrap sushi, in soups and salads, in snacks and instant noodles, and as livestock food.

Seaweed also provides a source of food for marine life. In April, Electrek reported that a groundbreaking study found that the first US offshore wind farm has had no negative effect on fish and has even proven to be beneficial.

Here’s a short video from Nordic SeaFarm that shows how the company grows and harvests seaweed for consumption:

Electrek’s Take

Pairing seaweed farms and offshore wind farms seems like an inspired idea.

Seaweed’s ability to absorb toxins and other contaminants from the sea make it environmentally friendly, but that’s not what humans want to consume. That’s where seaweed growers come in: they test the seaweed for safety and quality.

Any multipurpose sustainable use of an offshore wind farm, particularly one that provides both clean energy and nutritious food that doesn’t require either fertilizer or fresh water to grow, is a win. It’s also another example of innovation that the clean energy revolution is bringing about in the climate change fight.

Read more: This new innovation boosts wind farm energy output yet costs nothing


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EPA doubles electric school bus funding to almost $1B after overwhelming initial demand

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EPA doubles electric school bus funding to almost B after overwhelming initial demand

The Environmental Protection Agency (EPA) announced Thursday that the agency will almost double its funding for electric school buses to close to $1 billion after school districts from all 50 states applied for rebates.

Electric school buses are quickly taking over streets around the US as school districts and state leaders see how they can benefit the communities they serve in.

According to Dominion Energy, a power provider promoting the use of EVs for a cleaner and sustainable future, replacing one diesel bus can reduce greenhouse gas emissions by 54,000 pounds annually.

With help from Dominion’s initiatives, the second largest electric bus fleet in the US just crossed 500,000 service miles. By implementing EV buses, Virginia school districts were able to avoid 447.7 short tons of greenhouse gases.

These toxic fumes are known to creep into the bus’s interior while the bus is idling, harming the health of students taking them every day. A 2002 Yale study found dangerous particle levels were five to ten times higher while buses were stopped.

Although new standards have come along since then, it’s still not enough to limit the exposure when you can cut it out altogether.

Not only do electric school buses produce zero emissions, but they can also save school districts money on fuel and repair costs in the long run. For example, The Modesto Unified School District in California, which ordered 30 Blue Bird EV school buses, expects to save $250,000 a year on fuel.

With federal and many state funding options, there’s never been a better time to convert to an all-electric school bus fleet.

Electric-school-buses-US-1
Lion Electric EV school buses Source: Lion Electric

EPA doubles funding for electric school bus fleets across the US

The EPA Clean School Bus Program, part of the Bipartisan Infrastructure Law, provides $5 billion in funding for electric school buses through the next five years.

The first round of funding, announced in May, was supposed to free up $500 million, but after overwhelming demand from school districts across all 50 states, the EPA will now be almost doubling it to $965 million.

The EPA received about 2,000 applications, amounting to nearly $4 billion in funding, with over 90% submitting for zero-emission electric school buses. Sue Gander, director of the electric school bus initiative at the World Resources Institute, highlights the demand for fully electric options, claiming:

There’s more to the story. The overwhelming demand for electric school buses, over any other fuel type, is striking. Applicants across the country chose electric buses over propane at a rate of 10 to 1. There’s no doubt we’re entering a new, electric era in student transportation, one with massive benefits for our kids’ health, climate and the economy.

With requests for over eight times the initial funding round, EPA Administrator Michael S. Regan said on the program’s success thus far:

America’s school districts delivered this message loud and clear – we must replace older, dirty diesel school buses. Together, we can reduce climate pollution, improve air quality, and reduce the risk of health impacts like asthma for as many as 25 million children who ride the bus every day.

The EPA said it’s “moving swiftly” to review applications and expects the list of winning applicants to be released in October 2022. Applicants will be selected through a lottery-based system.

Another $1 billion round of funding for electric school buses will be in the Fiscal Year 2023, according to the EPA. The agency plans the next funding program to launch in the next few months, including a grant competition.

However, more may need to be done. Senator Carper, chair of the senate committee on environmental and public works, talks about the need for further funding, saying:

Given the response to the availability of these dollars, it’s clear that more funding is needed. I look forward to working with Administrator Regan, the rest of the Biden Administration, and my colleagues in Congress to build on this progress so that more communities can realize the clean air and energy saving benefits of these cleaner vehicles.

Will we have access to more funding for electric school buses? Time will tell. If the initial demand is any indication, school districts are ready and willing. It’s time to get the funding to make it happen.

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