BP claims its EV charging station are close to making more money for the company than its gas pumps
This division of the oil giant could be profitable on its own starting in 2025
The company focuses on fast charging rather than destination charging
Oil giants like BP and Shell were reluctant to see electric cars take over the automotive industry for fear of loosing money, but it now seems investing in electric charging could actually be more profitable for them than selling fuel.
BP, one of the leading global oil companies has announced that its BP Pulse electric charging network that is currently online in the UK is about to become more profitable than its sales of gasoline and diesel fuels.
Indeed, the company, which had begun investing in an Israel based fast charging company back in 2018, says that by 2025, its electric charging division could make enough money to be entirely self-sufficient, despite early predictions that this business model would lead to major losses for oil companies.
In order to maximise this profitability, BP intends on expanding its network from 11,000 stations to 70,000 stations by 2030, all of which will be fast chargers capable of 50-150 kW speeds, since the company is targeting fast-charging rather than slower and less profitable destination charging.
This is different from rival Shell, which also has an electric vehicle charging network, but less of a focus on fast chargers.
BP didn’t specify when the profits from EV charging are expected to overtake those from the sale of fuels, but it disclosed that its electricity sales increased by 45% between the second and third quarters of 2021, which signals an opportunity for growth.
Other oil companies will likely follow suit if it turns out selling electricity becomes more profitable than selling fuel, which could lead to a massive increase in the number of public charging stations and thus better infrastructures for electric vehicles.