LONDON – BP and Microsoft have agreed to work together as strategic partners to pursue digital transformation in energy systems and advance their respective net-zero carbon goals.
They plan to focus on digital solutions, the continued use of Microsoft Azure as a cloud-based solution for BP infrastructure, and BP supplying renewable energy to Microsoft to help the latter achieve its 2025 renewable energy goals.
Earlier this year, BP set a target of becoming a net zero emissions company by 2050 or earlier. By the end of the 2020s the company aims to have developed around 50 GW of net renewable generating capacity; to increase its annual low carbon investment to around $5 billion; and to reduce its oil and gas production by 40%.
In January, Microsoft announced its ambition to be carbon-negative by 2030 and by 2050 to remove more carbon from the environment than it has emitted during its history.
Under a memorandum of understanding, the two companies will initially focus on innovation in four areas that combine Microsoft’s digital expertise with BP’s understanding of energy markets. These include Industrial Internet of Things (IoT) solutions, delivering an ‘intelligent edge’ of capabilities to BP production and operations facilities.
According to BP, use of Microsoft 365 have led to greater collaboration and remote working productivity during the COVID-19 response.
In turn, BP will supply renewable energy to Microsoft across various countries and regions including the US, Europe and Latin America, helping Microsoft to attain its 100% renewable energy goal by 2025.