London (Platts)--27Feb2008

BP is considering ways to "realize the value" of its alternative energy
business, which includes its wind, solar and biofuels investments, CEO Tony
Hayward said Wednesday. Hayward denied the major wants to sell off the unit.
Hayward estimates that the loss-making business unit is currently worth
between $5 billion and $7 billion, based on market valuations of similar
companies.
"We intend to grow this business predominantly for its equity value,"
Hayward told analysts at a strategy presentation in London. "...What we'll be
doing over the course of the year is ways to realize that value for our
shareholders."
The head of BP's Alternative Energy unit, Vivienne Cox, promptly added:
"That doesn't mean then we're going to divest it."
BP said it had invested about $1.5 billion in alternatives since the
business was set up in 2005, with a further $1.5 billion of spending planned
for this year.
Asked when, or if, BP expects the unit to produce a profit, Cox declined
to say, adding it contains a "lot of growth opportunity."