UK: Bp Agrees To Sell US Onshore Wind Business To LS Power

Bp has announced that it has agreed to sell its US onshore wind business, BP Wind Energy North America Inc. (bp Wind Energy), to LS Power, a leading development, investment, and operating company focused on the North American power and energy infrastructure sector.

According to Bp, the transaction will be concluded by the end of the year, subject to regulatory approvals. This is the latest example of bp’s $20 billion divestment program to simplify and focus the business.

After the close of the transaction, bp Wind Energy will be owned and operated as part of LS Power’s portfolio company Clearlight Energy, increasing its operating fleet to approximately 4.3 GW.

Bp Wind Energy has been marketed as an integrated business, with its experienced workforce expected to transfer to the new owner upon completion of the deal.

The business has interests in 10 operating onshore wind energy assets across seven US states, operating nine of them.

The deal is part of bp’s focus on its low-carbon energy portfolio, prioritizing investment choices while delivering value for shareholders.

William Lin, bp EVP for Gas & Low Carbon Energy, said, “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.

The onshore US wind business has great assets and fantastic people, but we have concluded we are no longer the best owners to take it forward. I am pleased we have reached a mutually beneficial deal with LS Power, and I look forward to working with them to support our people in maintaining safe and reliable operations as we transition ownership.”

LS Power will add bp’s US onshore wind business to an existing fleet of renewable, energy storage, flexible gas, and renewable fuels assets, which comprise a 21 GW operating portfolio and more than 780 miles of high-voltage transmission lines in operation, as well as another 350+ miles currently under construction or development.

Paul Segal, CEO of LS Power, said, “We are focused on a holistic approach to advancing American energy infrastructure that includes improving existing energy assets while investing in transformative strategies that make energy more efficient, affordable, and available. Well-located with well-structured contracts, these new assets will expand our renewable energy presence and help meet growing energy demand across the US. We look forward to welcoming the talented teams operating these assets to LS Power and partnering with them to drive value for our stakeholders.”

In its Q1 2025 results, bp updated its divestment guidance for 2025 to $3-4 billion, with $1.5 billion signed or completed as of that date.

Source:https://energynewsafrica.com