BP is selling its U.S. onshore wind business to LS Power as part of a $20 billion divesture plan.
BP is selling its U.S.-based onshore wind business as the energy giant shifts its focus back to its core business of oil and gas.
On July 18, BP Plc announced an agreement to sell its BP Wind Energy North America Inc. to LS Power, a U.S.-based power and energy infrastructure company. The deal marks a key move in BP’s ongoing strategy to streamline its portfolio and shift capital back toward oil and gas operations.
In a statement, William Lin, BP’s executive vice president for gas and low-carbon energy, said it was no longer the best fit for developing the onshore wind business.
“We have been clear that while low carbon energy has a role to play in a simpler, more focused BP, we will continue to rationalize and optimize our portfolio to generate value,” Lin said in the statement.
The transaction includes 10 operating wind assets across seven states. The portfolio has a combined gross generating capacity of approximately 1.7 gigawatts, with BP owning a net 1.3 gigawatts.
Nine of the projects are operated by BP, and all are grid-connected with power contracts in place covering more than 15 off-takers.
Terms of the sale were not disclosed. The deal is expected to close by the end of the year, subject to regulatory approval. Once the deal is done, BP Wind Energy will be owned and operated under LS Power’s renewable subsidiary, Clearlight Energy, increasing its operating fleet to approximately 4.3 GW.
The move is part of BP’s ongoing divestment program “to simplify and focus the business,” the statement said. In February, BP CEO Murray Auchincloss said the company plans to divest $20 billion in assets by 2027.
BP’s wind asset sale complements previous divestments, such as its $1 billion stake sale in the TANAP gas pipeline earlier this year. The company is also exploring a potential sale of its Castrol lubricants business, as well as its mobility and convenience business in Austria.
