|
BP PLC on Friday said it had agreed to sell its US onshore wind business, BP Wind Energy North America, to New York-based energy infrastructure developer LS Power Development LLC. The London-based oil major has not disclosed the sale price, but said LS power was selected after competitive bidding. According to BP, its US division has a combined generating capacity of 1.7 gigawatts. It includes 10 grid-connected wind power assets across seven US states, nine of which are operated by BP. As of Friday, the division supplies 15 off-takers. It will be absorbed into LS Power subsidiary Clearlight Energy, increasing capacity of Clearlight’s fleet to about 4.3 gigawatts. BP said the disposal is part of a $20 billion divestment plan to consolidate operations and prioritise returns. Back in April, BP update guidance for divestments between $3 billion and USD 5 billion in 2025, weighted towards the second-half. Divestments totalled $4.2 billion in 2024. ‘We have been clear that while low carbon energy has a role to play in a simpler, more focused BP, we will continue to rationalise and optimise our portfolio to generate value,’ commented William Lin, executive vice president for gas & low carbon energy. ‘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.’ BP expects the deal to close by the end of 2025, and said it will update further on divestment proceeds when it publishes second-quarter results on August 5. Last Friday the firm guided for higher upstream oil output in the second quarter, noted results may be hit by weaker commodity prices and impairments. The company’s shares were up 1.7% at 404.08 pence on Friday morning in London. Copyright 2025 Alliance News Ltd. All Rights Reserved.
|
