BP Solar Panel Blaze Raises Concerns

“The cause of the fire is unknown at this stage and it would be unwise of us to speculate,” BP Solar said.

One well-placed solar industry source claimed that there were concerns about BP’s equipment in the industry, which generated global revenues of $37 billion last year. “Major manufacturers are up in arms because they don’t want to be tainted by this episode,” he said.

News of the fire surfaced days after Carl-Henric Svanberg, BP’s newly appointed chairman, said that clean energy would continue to play a key role in the oil group’s agenda.

Although BP invests more in renewable energy than many of its rivals, there has been uncertainty over its plans for alternative energy. Last month, Tony Hayward, the chief executive, questioned the economics of solar energy, claiming that the technology was unlikely to ever be as competitive as fossil fuels.

“I think solar is probably the most challenged of all of BP’s alternative energy interests,” he told a conference in California.

“It is not going to make the transition to be competitive with more conventional power — the gap is too big. If solar is going to make a breakthrough, there will be a technology disintermediation step.”

Vivienne Cox, head of alternative energy at BP, left the group this month and the company is shutting the head office of its alternative energy business in London. However, BP insists that it remains firmly commited to lower-carbon energy.

BP Alternative Energy operates a range of businesses, including American wind farms, solar power, biofuels, hydrogen energy and carbon-capture and storage projects.