Microsoft and bp have launched a strategic collaboration focussed on digital transformation in energy systems and advance the net zero carbon goals of both companies.

The tie-up includes a co-innovation effort for digital solutions and the continued use of Microsoft Azure as a cloud-based solution for bp infrastructure and bp supplying renewable energy to help Microsoft meet its 2025 renewable energy goals.

Earlier this year, bp announced its ambition to become a net zero emissions company by 2050 or sooner, and to help the world reach net zero.

By the end of the decade, it aims to have developed around 50 gigawatts of net renewable generating capacity – a 20-fold increase on what it has previously developed, increased annual low carbon investment 10-fold to around $5 billion and cut oil and gas production by 40 per cent.

In January 2020, Microsoft announced its goal to be carbon negative by 2030 and remove more carbon from the environment than it has emitted since its founding by 2050.

The move builds on the potential that both companies see in working together to help deliver a net zero carbon future.

Their co-innovation effort will initially be focused on four areas that combine Microsoft’s digital expertise with bp’s deep understanding of energy markets:

Smart and clean cities – identifying synergies between Microsoft’s ‘Smart Cities’ initiative and bp’s ‘Clean Cities’ vision, with a goal of identifying areas for strategic collaboration to help cities achieve their sustainability aims.

Clean energy parks – co-development of innovative, clean energy parks with an ecosystem of low carbon technologies such as carbon capture use and storage (CCUS) to prevent or reduce emissions.

Consumer energy – exploring innovative ways to harness the power of data-driven, personalized, actionable insights to empower energy consumers to manage their home energy use and reduce carbon emissions.

Industrial Internet of Things (IoT) solutions – delivering an ‘intelligent edge’ of capabilities to bp production and operations facilities.

William Lin, bp executive vice president for regions, cities and solutions, said: “bp is determined to get to net zero and to help the world do the same. No one can do it alone – partnerships with leading companies like Microsoft, with aligned ambitions, is going to be key to achieving this."

“By bringing our complementary skills and experience together, we are not only helping each other achieve our decarbonization ambitions but also creating opportunities to support others on their journey towards reducing carbon emissions.”

Judson Althoff, executive vice president of Microsoft’s Worldwide Commercial Business, said: “bp shares our vision for a net zero carbon future, and we are committed to working together to drive reductions in carbon emissions and fulfil demand with new renewable energy sources.”

He added: “A strategic partnership such as this enables each organization to bring its unique expertise for industry-leading change and the potential to positively impact billions of lives around the world.”

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