BP (BP)

Solar and Renewables

        Global market trends indicate a general move towards greener energy sources, including solar and wind. BP intends to participate in this developing market.

        During 2003, BP repositioned BP Solar in order to improve business performance. A number of specific restructuring measures were taken in order to improve short-term results with the need to provide opportunities for long-term growth. These decisions involved the consolidation of manufacturing operations in Spain, US, India and Australia, significant staff and other overhead reductions across the global business and restructuring provisions related to improving the overall efficiency of the business.

        This restructuring has enabled the Group to focus on core markets supported by global technology and manufacturing functions. 2004 has seen strong industry demand for photovoltaic products with sales increasing 38% to 99 MW of solar panel generating capacity (2003 71 MW, 2002 67 MW).

        BP Solar's main production facilities are located in Frederick, Maryland USA; Madrid Spain; Sydney, Australia; and Bangalore, India. In October 2004, BP announced plans to strengthen its position in the solar electric market to support its strategic growth plan of increasing global production capacity to 200 MW by the end of 2006.

        In Germany last year we opened a 4 MW solar farm, one of the largest in the world, on the site of a former plant near Merseburg, supplying enough power for 1,000 four-person households.

        As a major solar operator, BP has become involved in several projects around the world. In Malaysia in 2004, we completed a $39 million project, funded by the Ministry of Rural Development, which supplied more than 13,000 systems to remote communities situated in dense tropical rainforest, high mountain ridges and flood-prone river deltas. The systems deliver power to homes, rural clinics, community halls, schools and churches.

        In the Philippines, we continue to work in 2004 on the Solar Power Technology Support (SPOTS) project which is being jointly undertaken by the Philippines and Spanish governments. It has brought electricity to around 40 communities for everything from lighting in schools to water pumping for clean drinking water and vaccine refrigeration.

        We are building expertise in wind energy and implementing wind projects on selected BP sites. In January 2005, we began construction of a 9 MW wind farm at our oil terminal in Amsterdam, the Netherlands. We continue to operate our 22.5 MW wind farm at the Nerefco oil refinery (both the

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refinery and wind farm are jointly owned with Chevron (BP 69%)) in the Netherlands, which provides electricity to the local grid.

Solar and Renewables

        Global market trends indicate a general move towards greener energy sources, including solar and wind. BP intends to participate in this developing market.

        During 2003, BP repositioned BP Solar in order to improve business performance. A number of specific restructuring measures were taken in order to improve short-term results with the need to provide opportunities for long-term growth. These decisions involved the consolidation of manufacturing operations in Spain, US, India and Australia, significant staff and other overhead reductions across the global business and restructuring provisions related to improving the overall efficiency of the business.

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        This restructuring has enabled the Group to focus on core markets supported by global technology and manufacturing functions. 2004 has seen strong industry demand for photovoltaic products with sales increasing 38% to 99 MW of solar panel generating capacity (2003 71 MW, 2002 67 MW).

        BP Solar's main production facilities are located in Frederick, Maryland USA; Madrid Spain; Sydney, Australia; and Bangalore, India. In October 2004, BP announced plans to strengthen its position in the solar electric market to support its strategic growth plan of increasing global production capacity to 200 MW by the end of 2006.

        In Germany last year we opened a 4 MW solar farm, one of the largest in the world, on the site of a former plant near Merseburg, supplying enough power for 1,000 four-person households.

        As a major solar operator, BP has become involved in several projects around the world. In Malaysia in 2004, we completed a $39 million project, funded by the Ministry of Rural Development, which supplied more than 13,000 systems to remote communities situated in dense tropical rainforest, high mountain ridges and flood-prone river deltas. The systems deliver power to homes, rural clinics, community halls, schools and churches.

        In the Philippines, we continue to work in 2004 on the Solar Power Technology Support (SPOTS) project which is being jointly undertaken by the Philippines and Spanish governments. It has brought electricity to around 40 communities for everything from lighting in schools to water pumping for clean drinking water and vaccine refrigeration.

        We are building expertise in wind energy and implementing wind projects on selected BP sites. In January 2005, we began construction of a 9 MW wind farm at our oil terminal in Amsterdam, the Netherlands. We continue to operate our 22.5 MW wind farm at the Nerefco oil refinery (both the refinery and wind farm are jointly owned with Chevron (BP 69%)) in the Netherlands, which provides electricity to the local grid.