U.S. Onshore Wind Operations Transferred to BP
BP Sells US Onshore Wind Business to LS Power
BP, the British multinational oil and gas company, has agreed to sell its entire US onshore wind business, BP Wind Energy, to LS Power. The sale is part of BP's strategy to rationalize and optimize its portfolio, and it is not included in the $20 billion of divestments planned by BP.
The deal, which is expected to close by the end of 2025, subject to regulatory approvals, will see LS Power integrate BP Wind Energy into Clearlight Energy, its U.S. and Canada renewables-focused portfolio company. The acquisition significantly enhances LS Power's portfolio, increasing its renewables capacity to approximately 4,300 MW.
The sale forms part of BP's strategy to refocus on growing its oil and gas business. BP Wind Energy's portfolio includes 10 grid-connected wind assets in the U.S. across various states, with a total net capacity of 1.3 GW. The sale does not affect BP's focus on growing its oil and gas business.
William Lin, the EVP for Gas & Low Carbon Energy at BP, stated that while low-carbon energy remains part of BP's business model, they no longer see themselves as the best owners to advance this onshore wind business. BP intends to cut over $5 billion annually in clean energy spending and divest $20 billion in assets by 2027, focusing instead on reducing costs and prioritizing higher returns from fossil fuel production.
For LS Power, the acquisition represents a material investment towards achieving its mission to develop a cleaner, more reliable, and affordable energy ecosystem. The integration will increase Clearlight's operating fleet to approximately 4.3 GW.
The sale comes after the launch of a new strategy by BP in February 2025, which includes plans for approximately $20 billion of divestments by the end of 2027. The strategy reallocates capital to increase oil and gas investment, reducing low carbon energy to less than 5% of BP's capital expenditure allocation.
LS Power launched Clearlight Energy earlier this year, following its acquisition of Algonquin Power & Utilities' renewable energy business. The company's acquisition of BP Wind Energy's assets marks a significant step in its growth and expansion in the renewable energy sector.
The financial aspects of the deal will allow LS Power to further invest in the renewable-energy industry. With this acquisition, LS Power is aiming to finance the growth of its renewable energy capacity to approximately 4,300 MW. On the other hand, BP plans to reallocate the funds from the sale towards renewed emphasis on its traditional oil and gas industry.
