BP green exit accelerates as wind business sold
Oil giant agrees deal with LS Power for US onshore wind assets
BP is selling its onshore wind business in the latest stage of its reverse away from renewable energy.
The UK-based oil supermajor agreed a deal that will see LS Power acquire its 1.3GW of interests in 1.7GW of US assets spanning 10 operating projects.
William Lin, BP chief for gas and 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 rationalise and optimise 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.”
The deal for the onshore assets is expected to complete by the end of the year, BP said, adding that it will provide more details of its $20bn divestment plan when it reveals its second quarter results.
The onshore wind farms sold to LS Power actually pre-date the charge into renewables undertaken by Auchincloss' predecessor Bernard Looney and are a relic of an even earlier foray into green the oil giant made in the early 2000s.
LS Power said the assets will join its existing 21GW power portfolio. "Well-located with well-structured contracts, these new assets will expand our renewable energy presence and help to meet growing energy demand across the US."