bp signs strategic alliance with Iberdrola to advance e-mobility
Photo courtesy of Iberdrola

bp signs strategic alliance with Iberdrola to advance e-mobility

Iberdrola, a multinational electric utility company based in Bilbao, Spain, and UK-based energy major bp have signed a strategic alliance to accelerate the deployment of electric mobility. They plan to jointly invest EUR1 billion (USD1.06 billion) in 11,700 fast charging points, expanding the infrastructure necessary for the development of electric mobility in Spain and Portugal.

The transaction is part of the alliance framework set forth in Iberdrola’s 2023-2025 Strategic Plan. In July 2022, Iberdrola and bp announced their intention to form a joint venture. The signing of this strategic alliance is a step forward in the future formation of the joint venture, subject to the necessary regulatory and competition approvals and expected, once obtained, in the second half of 2023.

Once approved, the joint venture will enable Iberdrola and bp to significantly expand the public fast charging infrastructure for electric vehicles that will accelerate the penetration of electric vehicles in Spain and Portugal.

“This strategic alliance enables progress to be made in the electrification of transport as a key element in reducing energy dependence on fossil fuels and increasing energy efficiency. Iberdrola and bp contribute with this agreement to accelerate the deployment of electric vehicles and generate industrial development in Spain,” said Ignacio Galรกn, chairman of Iberdrola.

“Agreements like this can help people and companies to decarbonise sooner. By pooling our resources and expertise, we can deploy lower-carbon mobility solutions at scale for our customers,” said Bernard Looney, CEO of bp.

 “We have great respect for Iberdrola, who has been one of the first companies to lead the energy transition, and I believe this agreement will bring significant benefits to both our customers and our partners,” he said.

This agreement calls for the installation and operation of 5,000 fast charging points by 2025, with nearly 11,700 points to be reached by 2030. To achieve this goal, bp and Iberdrola will contribute their existing and future fast charging points to this joint venture.

Both companies are collaborating to develop joint solutions for public and domestic charging in the UK. The joint venture will maximise the capabilities of both companies to meet all the needs of electric vehicle users. Iberdrola leads the public charging infrastructure in Spain and Portugal with more than 3,500 points in operation and others under development, which rely on renewable energy to achieve the decarbonisation of transport, serving more than 100,000 users. It also offers solutions for electric vehicle users: residential, business and public recharging, including solutions for urban and heavy transport (electrification of buses and trucks). 

bp’s goal is to rapidly expand its electric vehicle charging points worldwide, and to continue investing in fast and ultra-fast charging infrastructure. Electric vehicle drivers can already access bp’s European network of more than 10,000 charging points, mainly in the United Kingdom and Germany. The joint venture will use part of bp’s extensive network of service stations as electric vehicle charging hubs in Spain and Portugal.