BP Forays Into EV Charging Market by Acquiring AMPLY Power
BP is planning to accelerate electrification in the fleet segment, which is crucial to reducing emissions from the transport sector.
BP plc BP announced that it acquired AMPLY Power for an undisclosed amount as part of plans to help the world reach net-zero emissions by 2050.
The acquisition represents BP's first major foray into the electric vehicle ("EV") charging market in the United States, one of the largest automotive markets globally.
AMPLY Power is an EV charging and energy infrastructure provider for fleets, which operate trucks, transit and school buses, vans, and light-duty vehicles. Per the terms of the deal, AMPLY Power will continue operating independently as part of BP's business portfolio.
BP is planning to accelerate electrification in the fleet segment, which is crucial to reducing emissions from the transport sector. In 2019, emissions from the transport sector accounted for nearly 29% of total U.S. greenhouse gas emissions, making it the largest contributor to greenhouse gas emissions in the United States.
AMPLY Power offers a unique opportunity to develop BP's EV business in the U.S. as it brings a fast-growing customer base and an accessible digital platform. The acquisition fits well with BP's plan to enhance next-generation mobility solutions as well as provide the fastest and reliable network of charging and digital solutions for customers.
Energy companies are increasingly investing in EV chargers as demand for the same is expected to grow significantly in the future. BP, which has EV charging stations in the U.K., Germany and China, aims to expand its global network of EV charging points to 70,000 by 2030. This indicates an increase from about 11,000 today.
BP has been expanding its charging businesses worldwide as electrification is the basis of its approach to mobility. The company continues to invest in new forms of infrastructure and technology to serve the fleet customers.
Company Profile & Price Performance
Headquartered in London, the U.K., BP is a fully integrated energy company, with a strong focus on renewable energy.
Shares of the company have underperformed the industry in the past three months. The stock has gained 14.6% compared with the industry's 15.6% growth.
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Zacks Rank & Key Picks
BP currently flaunts a Zack Rank #3 (Hold).
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