BP sells US wind business

The sale is part of BP's strategy to raise $20 billion through divestments.

BP sells US wind business to focus on oil

BP has announced the sale of its US onshore wind business to LS Power as part of its effort to refocus on fossil fuels. The wind farms, located in seven states, have a total capacity of 1.7GW, with BP owning 1.3GW. This transaction supports BP's $20 billion divestment plan aimed at improving financial performance and shareholder returns. The sale comes after a 10-month auction process, although the terms have not been disclosed. Recent market valuations suggest the wind business could be worth less than $2 billion. BP's shift away from wind energy is seen as a move to prioritize its oil and gas operations amid increasing pressure from investors. The company is also looking to sell its lubricants division Castrol, potentially valued at $8 billion. BP's share performance has been under scrutiny with the stock down over 10 percent in the past year, raising concerns about a possible takeover attempt.

BP's decision to divest from renewable energy illustrates a broader trend within the energy sector. As major oil companies face pressure from investors for higher returns, many are abandoning ambitious green energy goals. This shift raises important questions about the future of renewable energy investments, especially as climate change remains a pressing global concern. The focus back on oil and gas may bring short-term gains for BP, but it risks damaging its long-term reputation as a forward-thinking energy player. The continuing interest in the lubricants sale also indicates that BP aims to streamline operations even further amidst fluctuating market demands.

Highlights

As BP redirects its strategy, the implications for the renewable energy market remain to be seen.