BP: Fast charging stations will soon be more profitable than gas stations

BP: Fast charging stations will soon be more profitable than gas stations-profitable

Oil company BP aims to be 70 by 2030.Install 000 charging stations for vehicles. Quite a lucrative business if the company is to be believed that their fast-charging stations for electric vehicles are on the verge of becoming more profitable than filling up a petrol car. The milestone marks a significant moment for BP as it looks to move away from the oil business and expand its activities in the energy markets and electric vehicles.

Start of February 2021 were not all charging stations of the company profitably. In addition, the path from currently 11 appears.000 charging stations to 70.000 charging stations as quite athletic. But with a step-by-step expansion of your own BP loading network but can be reached. You wanted to orient yourself to the startup of e-mobility. Reuters reports that loading of electric vehicles for BP and their market committees for years was a loss-making business, as they invest heavily in its expansion. It is not expected that the division will become profitable before 2025, but at the margin base, the fast charging stations of BP approach the level that you reach when refueling gasoline.

“If I think about a tank filling compared to a quickload, we approach a point where the business bases are better for the quickload than for the fuel,” said Emma Delaney, Head of the Department of Customers and Products at BP, opposite Reuters. In addition, she states that the strong and growing demand for fast chargers in the UK and Europe has already brought profit margins close to those for traditional fueling-.

Delaney did not disclose the profit and loss for EV charging or when the overall profit from this business could eclipse traditional fuel. In 2020, BP reported a gross margin of $3.5 billion for retail fuel sales. Its customers and products division generated $2.6 billion in net income for the first nine months of 2021, about 17% of the company’s total income. The company also said that electricity sales for EV charging increased 45% sequentially in the third quarter of 2021.

According to consulting firm Thunder Said Energy, the traditional profit margin in the gas station business is about 17 cents per gallon, which translates to about 0.4 cents per kilowatt hour. Delaney arranges its own strategy as follows: “Overall, we see a great opportunity in the fast shop for consumers and companies as well as in the center of securities in general – there we see the growth and margins.”

While competitors like Shell invest in a series of charging technologies, including tens of thousands of slower low-voltage charging stations on streets in the United Kingdom and elsewhere, BP focuses on fast and ultra-fast charging technologies. “We decided to focus on the fast shop (> 50 kW charging power) – and not on the slow loading on lampposts,” said Delaney.

In 2018, BP bought Chargemaster, which then largest companies for loading electric vehicles in the United Kingdom. The oil company has also set up a joint venture with Didi Chuxing to set up charging infrastructure in China. Speaking to Bloomberg New Energy Finance in July 2019, David Eyton, BP’s head of technology, explains that the focus for BP in the electric car market is the time it takes to charge vehicles. A 150kW charger will give a vehicle a range of 100km in around 5 minutes, but Eyton hopes BP can provide more than 100km in the same amount of time.

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3 thoughts on “BP: Fast charging stations will soon be more profitable than gas stations”

  1. Location, location, location.
    The plots of the old gas stations are often in a better location than newer charging locations, e.g.B. Tesla Supercharger. An example: In Bensheim on the A5/B47 there is an ARAL truck stop with 4 fast chargers (ARAL belongs to BP). If you drive from the highway to the future Supercharger location, you have to go there first. You have to drive more than 1/2 kilometer there and back.

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  2. It is easy to imagine that charging stations will soon be more attractive to operators than petrol stations – given the insane and probably further increasing kwh prices! Only: in this way, e-mobility is stalled just as quickly as it had just picked up speed! If electricity prices (of which almost three quarters are made up of levies and taxes) are not counteracted soon, we can bury the mega-project Energiewende – and the life prospects of future generations with it…

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  3. If the greed for electricity price increases at the charging stations is not stopped very quickly,
    drivers are more likely to buy a petrol or diesel engine. This is already the case among frequent drivers and average earners. The rates of increase in e-mobility come from the tax savings models for company cars or from high earners in the second car sector. So far I have not known any family (4 people) who own their Passat, Touran or. Replaced the family station wagon with an electric car since they owed money and/or inherited it. Sad but true !!??

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