BP to Sell U.S. Onshore Wind Energy Business — Update

By Adam Whittaker

BP plans to sell its U.S. onshore wind energy division in a move to simplify its business and focus on its solar operation, Lightsource BP.

The London-listed oil and gas company said it would soon launch the sale process for BP Wind Energy, as the business isn't aligned with its growth plans for renewables via Lightsource BP, a solar joint venture it expects to take full ownership of before the end of the year.

BP Wind Energy owns stakes in operating onshore wind energy assets across seven U.S. states. The grid-connected assets have a combined gross generating capacity of 1.7 gigawatts. BP didn't provide financial details, but Bloomberg and the Financial Times have reported a business valuation of at least $2 billion.

The divestment is part of a wider strategy to simplify the business and increase the company's value as it transitions to an integrated energy company, it said.

Within renewables, BP is shifting its focus toward Lightsource, where it plans to develop assets for both solar and onshore wind. The shift will help meet BP's own demand for low-carbon power and help customers decarbonise their operations, the company said.

Separately, BP said Monday it was selling an undisclosed share in Trans Adriatic Pipeline to Apollo for $1 billion. The company announced that is was selling a non-controlling share in BP Pipelines TAP--which holds a 20% share in Trans Adriatic Pipeline--but would remain the controlling shareholder after the deal.

Trans Adriatic Pipeline owns and operates the final 880-kilometer leg of the Southern Gas Corridor pipeline system that transports natural gas from the Shah Deniz gas field in the Azerbaijan sector of the Caspian Sea to markets in Europe.

The sale is expected to complete in the fourth quarter of this year, subject to regulatory and other approvals.

Write to Adam Whittaker at adam.whittaker@wsj.com

(END) Dow Jones Newswires

September 16, 2024 12:19 ET (16:19 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.