BP Plc, the British oil and gas multinational, has revealed its intention to divest its onshore wind operations in the United States, citing a misalignment with its strategic growth objectives as it shifts its focus towards its solar partnership with Lightsource BP.

The company is set to initiate the sale process for BP Wind Energy, which encompasses interests in ten operational onshore wind energy facilities across seven states in the U.S., boasting a combined net generating capacity of 1.3 GW. The wind energy sector has faced numerous challenges, leading several companies to either cancel or renegotiate power contracts due to escalating material costs, elevated interest rates, and disruptions in the supply chain. William Lin, BP’s executive vice president for gas and low carbon energy, stated, “We believe the business is likely to be of greater value for another owner.”

In November, BP declared its intention to acquire complete ownership of Lightsource BP, the largest solar energy developer in Europe. This decision occurs during a period when BP’s new CEO, Murray Auchincloss, has halted new offshore wind initiatives and implemented a hiring freeze as the company shifts its focus back to its traditional oil and gas operations, responding to investor dissatisfaction with its energy transition approach. This represents a significant departure from the strategy of the previous CEO, Bernard Looney, who aimed to swiftly transition away from fossil fuels. BP’s increased emphasis on renewable energy in recent years has negatively impacted profits, as returns from clean energy have diminished while oil and gas prices have surged. The divestment from onshore wind aligns with BP’s renewed commitment to fossil fuels. Recently, BP completed a $1 billion agreement with Apollo Global Management (NYSE:APO) to support its investment in the Trans Adriatic natural gas pipeline. Apollo has now acquired a non-controlling interest in BP Pipelines TAP Limited, a subsidiary of BP that owns a 20% share in Trans Adriatic Pipeline AG. The funds generated from this transaction will aid BP in achieving its divestment target of $2 billion to $3 billion for 2024.

BP Plc – APO – Trans Adriatic Pipeline

Author: Dr. Arsham Ghasemi