Activist investor Bluebell Capital Partners is pushing for BP to urgently change tack, saying it is “highly debatable” whether the oil major’s strategy of reducing fossil fuel investments in favor of clean energy has any chance of succeeding.
Giuseppe Bivona, partner and co-chief investment officer at Bluebell, on Tuesday said that the FTSE 100 energy company’s depressed share price relative to its U.S. and European peers had been “totally underwhelming” in recent years, and that it should now consider deploying capital in a “rational way.”
“This was as a result of a strategy which was intended to blindly shrink BP’s core business in oil and gas and venture in other business in clean energy where, quite frankly, it is highly debatable whether BP has any chance to succeed,” Bivona told CNBC’s “Squawk Box Europe.”
“The path to get to net zero by 2050 is very narrow, which means it is very unlikely that we are going to be at net zero in 2050. Don’t get me wrong, I’m very happy that we all — not just the oil major companies — as part of society aim toward this goal,” he added.
“But I think it is very rational for a company to make as its base case a scenario which, actually is very, very unlikely to happen. And on that front, we are not asking BP to renege on its strategy, but to adapt its strategy to the reality.”
His comments come shortly after it was revealed Bluebell co-founders Bivone and Marco Taricco wrote a letter to BP chair Helge Lund and then-interim CEO Murray Auchincloss in October. Auchincloss has since been appointed as permanent CEO of the British oil and gas major.
Bluebell’s letter, which was first reported on by the Financial Times on Monday, said that BP’s investment strategy assumed a “drastic decline in oil and gas demand, which we consider to be utterly unrealistic.”
In response to the publication of the letter, a spokesperson for BP said the company “welcomes constructive engagement” with its shareholders.
A general view of the BP logo and petrol station forecourt sign on January 22, 2024 in Southend, United Kingdom.
John Keeble | Getty Images News | Getty Images
“We have met with most of our major shareholders recently and continue to receive support for our strategy. We continue to make significant progress, remain focused on delivery, and are confident the strategy will grow the value of bp and deliver sustainable long-term value for shareholders,” BP said.
Bivona declined to disclose Bluebell’s stake in BP, saying that it was below a reporting threshold. The relatively small but influential London-based firm, which focuses on large cap European equities, has previously mounted campaigns against French food company Danone and mining giant Glencore.
‘Clear admission’ of a strategic mistake
Under the leadership of Bernard Looney, who resigned in September after less than four years on the job, the oil major had promised that its overall emissions would be 35% to 40% lower by the end of the decade.
The firm, which was one of the first energy giants to announce plans to cut emissions to net zero “by 2050 or sooner,” watered down these climate plans last year.
It said on Feb. 7 that the firm would instead target a 20% to 30% cut, noting that it needed to keep investing in oil and gas to meet demand.
Bluebell’s Bivona said last year’s announcement was a “clear admission” of a strategic mistake and another adjustment was now needed.
“I’m very glad for the discussion we are having with BP, which anyway is listening and is proving to be a company willing to constructively engage with all of their shareholders,” Bivona said.
Shares of BP were slightly higher on Tuesday afternoon in London. The company is scheduled to release its fourth-quarter and full-year 2023 results on Feb. 6.
All the cool suburbanites are already taking their kids to school, loading up at the farmers’ market, and making deliveries on clever and capable cargo e-bikes, but the new Momentum Cito E+ from Giant raises the cargo bike bar even higher — and makes leaving the car at home easier than ever.
Momentum is a new brand of “lifestyle” e-bikes from Giant Group designed to deliver premium features to customers while still hitting that $3,000-4,000 market “sweet spot.” Their latest bike, the all-new for 2024 Cito E+ utility bike, does just that, coming to market with a premium battery, Bluetooth technology, a suite of high-end safety features, and a $3,200 starting price.
Premium battery
Getting the most out of your e-bike often means getting the most out of your battery — and Momentum absolutely gets that. The Cito E+ ships with a 780 Watt-hour Panasonic battery pack with 22700 cells that have been optimized for e-bike use.
The battery is easily removable for charging at home or in an office, but it can be charged while it’s in the bike, too. Either way, charging won’t take long — from 0 to 80% of charge (approx. 60 miles) of range is available in 3.5 hours, while a full (75 mile) charge takes less than 5 hours.
Connected cargo bike
As our test rider highlights in the video (above), the Momentum Cito E+ uses a proprietary battery management system, or BMS, to monitor the battery pack for maximum efficiency and reliability down to the individual cell level.
The BMS uses Bluetooth connectivity to transfer battery health data, state of charge, and other important information straight to the RideControl app, which enables the bike’s owner to get an in-depth look at the overall state of their e-bike and provides valuable diagnostic data to both the technicians tasked with servicing the bike and Giant themselves, to help develop even better e-bikes in the future.
That connection to Giant Group is a huge potential benefit to Momentum Cito E+ buyers, by the way, as it gives them access to support from more than 1,200 brick and mortar Giant dealers across the US alone (above).
That’s a serious advantage that online-only bike brands simply can’t match.
Safety first … and maybe second, too
Powerful, premium disc brakes.High-visibility LEDs and electric horn.
Momentum’s commitment to safety doesn’t stop at the battery. The Cito E+ features confidence-inspiring 4 piston hydraulic disc brakes and a heavy duty suspension for predictable handling even under heavy loads — important if you have to suddenly haul the bike down from its electronically assisted 28 mph top speed with precious kids and cargo on the back.
LED head and taillights with a lever-activated taillight ensure Cito E+ riders will be seen, too, helping you stay safer after hours.
Accessories and add-ons
Momentum Cito E+ top tube accessory and Momentum front basket shown; image by Electrek.
Momentum’s Cito E+ offers a comprehensive selection of accessories to help optimize it for each rider’s unique use case — whether that’s hauling up to 132 lbs. of cargo on the rear rack and 33 lbs. on the optional front basket (shown, above), or adding 2 Thule Yepp Maxi seats and getting the little ones to school five times a week.
You can find out more about the Momentum Cito E+ and the brand’s available accessories by clicking here.
Momentum Cito E+ gallery
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ARK Invest’s chief futurist lists five groups that should give tech investors an edge.
According to Brett Winton, robotics, artificial intelligence, multi-omics sequencing, public blockchain and energy storage are key areas because they’re all entering the marketplace at the same time.
“We believe that this is a unique time in technological economic history,” he told CNBC’s “ETF Edge” this week.
Winton collaborates with ARK Invest CEO Cathie Wood to maintain the ARK Venture Fund(ARKVX), which allows investors to buy into the private technology space.
According to the firm’s website, the goal of the fund is to make venture capital offerings of innovative spaces in the market accessible to individual investors. As of April 10, it shows the fund’s top holdings include Epic Games, known for online video game Fortnite, and biotech companies Freenome and Relation Therapeutics.
“Our emphasis is that we are investing in innovation over the long term and going to support management teams,” said Winton.
He contends it’s a strategy that’s often not prioritized.
“That’s a real challenge a lot of public market investors don’t have that long-term view,” Winton added.
The ARK Venture Fund is down more than 7% so far this year. However, it’s up almost 39% percent over the past 52-weeks.
FirstElement Fuels has opened the world’s first large-scale hydrogen fueling station for heavy-duty commercial trucks just outside the Port of Oakland.
FirstElement is calling their new filling station, which opened to the public this week for tours and demonstrations, the first of its kind. Located near the Port of Oakland, the company claims its hydrogen pumps can “fill” a truck’s hydrogen tanks in as little as ten minutes, which works out (in their math) to as many as 200 trucks per day.
A ceremony to mark the station’s opening was held Tuesday, and was attended by state officials including Liane Randolph, chair of the California Air Resources Board (CARB) and Tyson Eckerle, clean transportation advisor for Gov. Gavin Newsom’s business development office. Primary funding for the Oakland station was provided by CARB and the California Energy Commission.
Eckerle notes that the US federal government is handing out $8 billion to jump-start what it calls the “hydrogen economy,” and expects sufficient funding to build up to 60 more hydrogen truck stations like this one in California – which would, theoretically, be enough to serve 5,000 trucks and 1,000 buses.
All well and good, but …
What if it’s already too late for hydrogen?
Image via Coyote Container.
MAN Trucks CEO, Alexander Vlaskamp, said it best when he said that it was “impossible” for hydrogen to effectively compete with BEVs.
Even so, it seems like the tide of public opinion is already starting to turn against hydrogen. Outlets that may never have questioned a manufacturer’s claims about a hydrogen-fueled vehicle a few years ago now seem more than willing to call those claims out. Here’s just one example:
Producing hydrogen itself can be very dirty. Most hydrogen produced today requires methane, which is a fossil fuel and a strong greenhouse gas contributor. The industry is working on production alternatives, including carbon capture and storage from the burning of methane, or quitting methane altogether to make green hydrogen, using an electrolyzer to split water’s hydrogen and oxygen.
Both alternatives are prohibitively expensive without government subsidies.
So far, it’s not clear that FirstElement’s claims about either the sustainability of its hydrogen or the practicality of its filling station will convince many battery electric absolutists.
Take the company’s hydrogen production process as an example. FirstElement says that its supplier, Air Liquide in Las Vegas, uses natural gas as “feedstock” for its hydrogen. It buys biogas to blend with natural gas in order to create hydrogen – and that, because the gas used is more than 60% renewable, the hydrogen qualifies as “green.”
Additionally, the claim of 10 minute fast fills should come with an asterisk or two. That’s because FirstGreen is using new “cryopump” technology from Bosch Rexroth to allow for filling at 900 bar (15,000 psi). While that seems like more enough to push 100 kg into a tank in about ten minutes, cryogenically cooling hydrogen is an energy intensive technology that requires a lot of electricity to function properly. Electricity that it says will come from the stored hydrogen.
In fairness, however, Bosch has some ideas here to help station owners maximize the usefulness of all that electricity.
“Cold is like gold,” says Dave Hull, regional vice-president, Bosch Rexroth. “You’ve got all this cold energy. All my career I worked to get rid of heat. You can take that energy and run a whole station’s refrigerators for Rock Star energy drinks, or air conditioning. Bosh has a whole division of heat pumps and building technologies.”
Whether or not that added efficiency adds up to actual energy and cost savings, rather than a lifeline for the gas industry and tier 1 auto suppliers like Bosch however, remains to be seen. Meanwhile, hydrogen costs continue to rise.
Platts last assessed California’s retail hydrogen price at $33.48/kg Jan. 4, 2023, which is the weighted average hydrogen price offered at retail fueling stations across the state. The price has risen 112% from when Platts began the assessment in September 2021, according to S&P Global Commodity Insights data.
Despite the high cost of hydrogen (“green” hydrogen is more expensive, still), Shane Stephens, one of FirstElement’s founders and its chief development officer, remains undeterred.
“We, at FirstElement Fuels, have a lot of confidence the market is coming,” says Stephens. “We see the regulations on the horizon, the OEMs and fleet owners are going to have to respond to that, especially when it comes to goods movement, and hydrogen and fuel cells are the best – if not only – solution that will work for many of those use cases.”
Electrek’s Take
As a light vehicle fuel – despite the efforts of Hyundai, Toyota, and (more recently) Honda – things aren’t going well for hydrogen. As a fuel for massive semi trucks and even bigger heavy equipment, however, it might stand a chance against current battery technology.
But battery tech isn’t stagnant, and lighter, better, faster charging battery news that used to come every year, and then every month, now seems to be coming every week – and I’d argue that you’d be foolish to assume batteries that are twice as energy dense at half the weight won’t be here well ahead of California’s 2035 ICE ban.
But that’s just me. You guys are smart. Head on down to the comments and let us know what you think.
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