The first is a long-term power purchase agreement signed with American Electric Power (AEP) to buy 200 megawatts of wind power from BP Alternative Energy's Fowler Ridge Wind Farm in Indiana. BP also announced a partnership with Powerspan, a pollution-control technology developer, to develop and commercialize technology for carbon capture at power plants.
For all this progress, however, Uldrich warns against viewing BP as a "cleantech" investment.
"As impressive as BP's solar and wind programs are, they pale in comparison to the immense opportunity that awaits the company in the field of biofuels. BP is, after all, still primarily an oil and gas company, and it only makes sense that it's interested in pursuing commercial opportunities in this area...However, with over 8% of its revenues now being generated from renewable energy, it does offer traditional energy investors a legitimate way to
dip their toe into the renewable energy market.
Furthermore, because of its growing commitment to solar, wind, and biofuels, that 8% figure is likely to grow over the coming years. With a down-to-earth P/E ratio of just over 10 - which is about 15% lower than ExxonMobil's (XOM) and ConocoPhillips' (COP) P/E ratio - it offers a relatively low level of risk at an attractive price."