BP closes Alternative Energy HQ

BP has insisted it remains firmly on track with plans to grow its Alternative Energy business, despite confirmation it has accepted the resignation of the division's boss and is to close down its London headquarters.

A spokesman for the oil giant told BusinessGreen.com that the move was part of a process of "simplification and overhead reduction", and should not be interpreted as a sign of wavering commitment to the clean energy division.

He explained that BP had space at its corporate head office in St James Square following earlier cutbacks, and as a result it made sense to move the 80-strong BP Alternative Energy division from its headquarters in County Hall.

He also dismissed reports that the retirement of the division's managing director, Vivienne Cox, was in part motivated by cuts in BP's clean energy investment from $1.4bn (£847m) last year to between $500m and $1bn this year, and a sense that the unit was being sidelined.

BP insists Cox has retired to spend more time with her family. She is to be replaced by Katrina Landis, who worked as chief operating officer within BP Alternative Energy.

"There is no change in strategy and no change to the business," said the spokesman. "Just a change in the postal address and a change in the person heading it up."

He added that the recent cuts in investment were primarily a result of the recession and that BP remained "slightly ahead of schedule" in its plan to invest $8bn in clean energy between 2005 and 2015.

However, the move is likely to add further grist to the mill of environmental groups which have repeatedly criticised the company for a perceived softening in its support for clean technologies following the appointment of new group chief executive Tony Hayward.

While his predecessor, Lord Browne, made a public pledge to take the company "Beyond Petroleum", Hayward has struggled to shake off the impression that he is less sold on the case for renewable energy and has also controversially increased investment in carbon-intensive tar sands projects.