Oil giant BP has unveiled plans to invest $500 million (£359m) each year in low-carbon businesses.

Deputy Chief Executive Lemar McKay said that the company wanted to make further acquisitions to strengthen its alternative energy division.

Low-carbon power generation and energy storage are at the top of the firm’s shopping list.

Chief Executive Bob Dudley added: “We are embracing the energy transition, seeking new opportunities in a changing, lower-carbon world.”

BP and Shell compete in alternative energy

Last year BP bought a 43% stake in solar power developer Lightsource for £148m.

Rival Shell last week announced plans to invest up to $2 billion a year in low-carbon developments.

Electric vehicle charging and renewable energy feature highly in each company’s plans.

> Read more about BP's Lightsource deal