BP has become the first energy company to establish a securities company in Spain, allowing it to offer financial solutions focused on energy derivatives to professional and eligible clients within the European Economic Area.
The new BP Energy Solutions SV is registered as an investment services company and can operate both on behalf of clients and on its own account. The company has its origin in a public limited company incorporated in June 2021 and required BP to inject funds to reach the €2m ($2.4m) share capital required to establish itself as a securities company. The BP subsidiary becomes the 35th securities company operating in Spain, with its domicile established in Madrid.
BP’s new securities company is fully owned by Britannic Strategies Ltd and is headed by the president of BP Spain, Andres Guevara de la Vega. The company’s directors include European executives of BP such as Arnaud Cruiziat, María Fernández-Argüelles Velasco, and Elaine Skinner-Reid, in charge of areas on renewable energy and European electricity, gas, and hydrogen. The company is undergoing a deep transition to achieve net-zero emissions by 2050, and the Castellón refinery is a key part of this transition, moving towards an Integrated Energy Center. BP is developing the production of biofuels from the Castellón power plant and has launched the first eco-aviation biofuel with International Sustainability and Carbon Certification in the EU. The company’s plan is to produce 31,200 tons of green hydrogen and 400,000 tons of biofuel per year from Castellón territory by 2027, an initiative in which only the British company will invest €2bn ($2.4bn). BP’s objective is to reach an electrolysis capacity of 2 GW for the production of green hydrogen in 2030, for which a large amount of renewable energy will be required.
Potential challenges surrounding BP’s securities company include the current state of the energy market, which has been volatile due to the Covid-19 pandemic. It remains to be seen how BP will navigate this market and achieve its objectives. Additionally, BP’s transition to net-zero emissions by 2050 will require significant investment and may face potential political, social, and environmental challenges. However, BP has demonstrated its commitment to sustainability through its investment in green hydrogen and biofuels, and the establishment of its securities company in Spain represents a significant step towards its goals.