The transaction, expected to conclude by the end of the year, involves 10 operating wind assets with a total generating capacity of 1.3GW net to bp.
In a significant move to streamline its global portfolio, oil and gas energy giant BP announced on July 18, that it has agreed to sell its entire US onshore wind business, BP Wind Energy North America Inc. (bp Wind Energy), to LS Power, a prominent player in the North American power and energy infrastructure sector.
The transaction encompasses bp Wind Energy's interests in 10 operational onshore wind energy assets situated across seven US states. These assets boast a combined gross generating capacity of 1.7GW, with 1.3GW net to bp. Notably, nine of these facilities are operated directly by bp Wind Energy. All assets are fully integrated into the grid and supply power to over 15 off-takers.
Upon the deal's closure, bp Wind Energy will be integrated into LS Power's portfolio company, Clearlight Energy. This acquisition is set to significantly boost Clearlight Energy's operational fleet to approximately 4.3GW, solidifying LS Power's position in the renewable energy landscape. The acquisition also includes the experienced workforce of bp Wind Energy, who are expected to transition to the new owner, ensuring continuity of operations and leveraging their expertise.
William Lin, EVP for gas & low carbon energy at bp, articulated the rationale behind the sale. "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 stated. He added, "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."
Paul Segal, CEO of LS Power, commented on the deal's significance: "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." He further emphasized, "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. We look forward to welcoming the talented teams operating these assets to LS Power and partnering with them to drive value for our stakeholders."
The company's first-quarter 2025 results had already updated its divestment guidance to $3-4 billion for 2025, with $1.5 billion already signed or completed by that date.
