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BP Alternative Energy CEO Katrina Landis on spending billions to develop alternative energy technology.
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It's spreading big box on alternative energy what do they expect to get out of it -- -- Katrina land issues CEO be you know.
Better she she joins us now from Washington DC Katrina.
EPS at roughly seven billion dollars on alternative energy projects I think he spent four billion here in the US.
Return on that investment as your for profitable.
And well -- each and individual projects has probable we'll.
Listen we have to compete with oil and gas projects with other types of -- investment opportunities within BP.
And there's a minimum threshold that we expect for all of our projects T chin and we've been able to check that threshold for every single one of our investments in wind and -- -- skills thus -- So they're actually making money you're making more than -- spending on it.
That's not assets so we -- and developing some really interesting in -- technologies.
Which are early in their life cycles at the moment such as cellulose to biofuels -- the United States.
That's requiring that we invest hundreds of millions of dollars in the development of this technology.
We haven't yet built our first commercial -- for so realistic -- it feels so it as an example is not generating operating cash that covers the investments that we're making.
-- and that's why the renewable fuel standard is so important to us because it allows the industry to make these events and invests in research and development and bringing new technologies to the market.
With some form of assurance that we're gonna get a return on those investments over time.
And -- projects on the other hand are generating considerable amounts of operating cash today we have thirteen operating when environments.
Some -- building -- this year.
And with the potential to announce a third in the coming weeks.
Yet it would probably gonna talk about -- -- good sport and I can't really lately look at what happened out there and we appreciate you standing -- doing -- with -- anyway.
I'll let me ask you about those wind projects -- I know that the production tax credit from the government is really critical to those wind projects.
You have a thousand turbines in thirteen operating wind farms.
I give -- farms plant for 2012 but that tax credit.
Is set to expire at the end of the year how critical is it your project how many dollars does it mean to UN and will you continue its not there.
He can listen this is an example -- and incentive programs from the government which is working extremely well.
We've seen that price and wind energy come down dramatically over the course of the last several years.
As an example we've seen -- 25% reduction in wind power bonds over the last three years.
And wind turbines are improving year on year on year in terms of efficiency and effectiveness.
We were able to get into California and Green -- -- site where we believe.
139.
-- -- -- placement with eight new -- you have double the output at that site.
We're almost out of time so I don't -- not -- back.
How critical is the tax credit only continue because -- ways it's still worth it to you you are after odd company that needs to make money you're responsible your shareholders.
You know there's there's nothing wrong with that if if you can't do it because it's too expensive will you continue.
Well -- that we think the production tax credit is needed for the next three to four years well wind continues down its pricey compared to the point where -- can compete with -- -- and other points.
-- -- that any form of.
So we're looking forward -- transitional credits over the next redeploy your time frame that essentially means that the Americans have a more diversified very days.
Joining us today.
You're treating you are wonderful sport for battling the elements out there doing it went back -- we really appreciate didn't go get out of the -- thank you don't I don't think yes but.
