BP Looks to Expand Into Mexico’s Renewable Energy Market

Energy giant BP said it is interested in growing its operations in Mexico to push its transition to renewable energy. Until now, BP’s participation in Mexico has remained confined to the fuel market with service stations and oil and gas imports.

BP is in the process of transitioning from an oil company to an integrated energy company by including renewable energy and alternative fuels in its portfolio. For a few years now, the British company has focused on the production of biofuels, green hydrogen, solar and wind energy, as well as green mobility, all to reach zero emissions.

During the presentation of BP’s Energy Outlook 2023, Angelica Ruiz, President Mexico, BP, said the company is analyzing the possibility of stepping into the renewable energy market in Mexico. “Mexico is on the company’s map,” she commented. Ruiz stressed that her team is analyzing differing development scenarios and noted that the solar and wind energy offer in the country is extraordinary. “Wind and solar energy have an energy capacity of up to 40% in many areas such as Tamaulipas and Oaxaca. Without a doubt, this is one of the possibilities," she said.

Ruiz, who is also BP's Vice President for Latin America, pointed out that the energy transition is a key ambition for the company, based on three pillars: resilient hydrocarbons, low carbon energy and mobility. In addition to renewable energy, the company is betting on biofuels, electro-mobility and green hydrogen. 

She added that BP plans to integrate its energy in US supply chains to benefit from nearshoring. "We heard Tesla’s announcement a few weeks ago and know that nearshoring will play a fundamental role…It seems to me that Mexico, one of the ten most important economies in the world depending on the ranking, can play a fundamental role for the US and in South America," she underscored.

On the other hand, Ruiz explained that while BP is turning towards decarbonization and zero emissions, hydrocarbons are still a core element in most economies. However, fossil fuels require a different approach: from now on, hydrocarbon production should focus on what she called the energy trilemma, meaning that hydrocarbons must be sustainable, have lower emissions and remain accessible. “All energies are complementary, so the transition that BP has had from being an oil company to an integrated energy company is complementary, one where there is room for all energies,” she said. 

Michael Cohen, Chief Economist, BP America, pointed out that Mexico has an opportunity to reduce energy dependence and import costs through the energy transition. “The amount of solar energy that is available in Mexico is about 145 times the energy demand by 2025. This is a great opportunity for the country but we must take it, the time to act is now,” he said.