BP Solar will stop producing solar photovoltaic (PV) cells and panels at its manufacturing plant in Sydney Olympic park at the end of March 2009. The company said that is looking to focus its operations at larger scale plants in lowest cost manufacturing countries, in order to drive down the cost of solar power for consumers.
"The challenge for solar power is to reduce its costs to the level at which it competes on an equal footing with conventional electricity delivered through the power grid. To do this we need to expand at scale and reduce costs."
-- Reyad Fezzaniglobal, CEO, BP Solar
The BP Solar sales and marketing team in Australia will continue their activities, and aim to grow the sales and servicing of solar products. However, BP Solar said it regrets that approximately 200 jobs will be lost from the manufacturing plant.
"The challenge for solar power is to reduce its costs to the level at which it competes on an equal footing with conventional electricity delivered through the power grid. To do this we need to expand at scale and reduce costs," said Reyad Fezzani, Global CEO of BP Solar.
Get educated on "ratchet" rackets.
BP is Big Profit for Big Oil. Solar is competition to the BP of Big Oil.
Shell and BP purchased solar to close it down.
BP also purchased ethanol refineries.
The third largest ethanol plant in the US filed for bankruptcy this month.
That ethanol plant represented 13% of the US total ethanol production.
BP Big Profit from BP Big Oil will continue to procure competition to close down. Make Big Profits. Temporarily ratched down the price. Run out the competition. With competition gone, raise Big Profits.
The Ratchet Racket
Ratchet up profits for BP, Big Oil, Shell.
Ratched down prices to starve out competition, solar, wind, hydro, biomass.
Ratchet up prices at will.
Brace up. What BP rachets down will always racket back up many fold.
What goes down must go up.
BP bought solar to make money, and they have done so. I have installed dozens of their panels, and they make a nice product. BP makes a lot of panels, of good quality, at a reasonable price, and they will continue to do so as long as it is profitable.
Ethanol is a scam, anyway. It takes 11 calories of petroleum to get 10 calories of ethanol from corn, which is the kind of ethanol made in the US. If the plant got shut down, that is a good thing. Ethanol subsidizes American corn farmers at a heavy cost to the environment. On calorie based accounting, its a net loss.
Further, another thing BP Solar does is donate panels to a lot of people. They donated panels for a classroom at Maya Mountain Research Farm (MMRF) in Belize (www.mmrfbz.org) and recently donated panels for a water pumping application that MMRF is installing in a Maya community. That system will benefit 40 households. There is nothing in it for BP except that I mention it sometimes, and the warm feeling the people at BP get knowing their panels make a huge difference in the quality of life for that community.
Solar is business, and all the companies doing solar expect to make money, and they will. Other markets will expand and contract, but the market for energy can only increase, and the market for clean energy is one that increases as the cost of dirty energy goes up.
I have seen the Management of BP Solar at numerous government forums pushing for positive government policies on Solar Energy.
So while no one likes the machinations of the oil industry and its up & down swings in our energy costs, I retain great respect for BP Solar.
Renewable Energy (Solar, Wind, Geothermal) is in competiton with coal and IF we just enforced existing EPA regulations for clean water & air, the cost imbalance would largely disappear.
And IF you really believe all the hype about "Clean Coal", ask yourself why 7 Eastern states have had to wage a 5 year legal battle against the damage pollution from Coal Fired power plants to the West of us is doing to our environment. The States in question, the Utilities, and the EPA have all refused to force the clean up, even though the EPA has the authority to enforce a "Best Available Technology" standard - it continues to grant waivers. So our state tax dollars are consumed in a very expensive legal battle that wouldn't exist if "Clean Coal" did...
Solar Energy is not only solar electricity, it is solar thermal as well. Importation of natural gas is becoming a major concern, if for no other reason than that the US is exporting dollars and importing a non-renewable fossil fuel comodity that generates carbon dioxide and nitrous oxides, and is used to fuel the least efficient peak power electricity generating facilities, in large part. Why heat water or homes with largely imported fuels? Heating water with PV is highly questionable from a cost-effectiveness perspective, to say the least. PV's great quality and value is that it can be the final, essential element of sound renewable energy policy after energy efficiency and solar thermal have contributed to the goal of reducing building energy consumption. Best regards.
Solar architecture backed by solar plumbing and HVAC: Let's roll!
(Save the oil for the Big One.)
When a Big Corporation Like BP says that they can't make any money with the plant(s) they have in one country and need to move production to another there is something you need to understand.
Big Corporations are by their nature Inefficient, waste huge sums of money and really can't produce profits very effectively. Corporations like BP can continue to run their businesses like this because they play in Very Niche Markets that are largely devoid of strong competition and so can perpetuate their poor business practices and be successful enough to keep their shareholders happy.
I could take that operation subtract all Crap that BP burdens it with, turn it around and make huge profits... More than enough to keep the 200 jobs, and build a competitor that could daily beat the pants off of BP or any other Big Old Corporation of similar ilk.
I've seen this before. Don't discount what 200 committed people can do. Just because BP can't do it doesn't in any way mean it can't be done. Big Old Corporations bring Big Overhead to everything they do and need even Bigger Margins just to make it worth it. In the end they can't compete with a lean and effectively run operation that would be fat and happy on half the margins Big Old BP needs just to break even.
It is small businesses that bring real revolutionary change to markets, not the Big Old ones.
Besides BP has its focus blurred by going in 50 different directions at the same time.
A small sharply focused company can out perform any Big Old Company any day, any place.
BP can close that plant, strip it of the machinery and ship it off to who knows where.
But if they don't ship out those 200 workers, they are leaving the most valuable asset behind.
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