On Wednesday, BP Plc announced the acquisition of a majority stake in the US biggest carbon offset developer, Finite Carbon as a part of its climate targets and in developing a new revenue stream.
BP did not elaborate on the value of the transaction or the size of the new stake.
Last year, BP made an initial investment of USD5 million in Finite, saying that it would boost Finite expansion into other countries.
Currently, Finite has 50 carbon projects on 3 million acres in the US. The company generated more than USD500 million in revenue for landowners. In the upcoming decade, it plans to generate USD1 billion for landowners after a 20-40% cut of the proceeds.
BP is betting on an expected increase in carbon credit prices to counter falling fossil fuel profits as the energy transition accelerates. Earlier in 2020, the company revealed its target to be one of the world’s biggest renewable power generators with an increase in capacity by 20-fold to 50 GW by 2030 while also slashing its oil output by 40%. BP will also divert more funds to invest in low-carbon.
