British Energy Giant BP plans to Divest its U.S. Onshore Wind Energy business, BP Wind Energy, stating that these Assets do Not align with its Strategic Growth Plans.
The Sale process for the Wind Assets, which include Interests in Ten Operating Onshore Wind Energy Assets across Seven States in the U.S, is set to commence in the Aautumn of 2024.
The decision to sell comes as several Offshore Wind companies have Cancelled or Renegotiated Power Contracts for planned U.S. Projects, citing rising Material Costs, High Interest Rates, and Supply Chain Challenges. BP Wind Energy's Assets, with a Net Generating Capacity of 1.3GW, are Not in Line with BP's Focus on Growth in Lightsource BP.
In November 2023, BP announced its intention to take Full Ownership of Lightsource BP, Europe's Largest Solar Energy Developer, with the Acquisition expected to be Finalised by the end of the year. The Company now plans to Integrate its Onshore Renewable Power Development into Lightsource BP.
The Strategic shift comes as BP's New CEO, Murray Auchincloss, has Implemented a Hiring Freeze and halted New Offshore Wind Projects, placing a Renewed emphasis on Oil and Gas in response to Investor concerns over BP's Energy Transition Strategy, as revealed by Reuters in June 2024.
The move signifies a notable Change from the Path taken by Auchincloss's Predecessor, Bernard Looney, who had aimed to rapidly Transition away from Fossil Fuels. OAs a result, BP's Share value has been affected, with Renewable Energy returns Diminishing, while Profits from oil and Gas surged post-Covid-19 Pandemic and following the Conflict in Ukraine.
In August 2024, Lightsource BP and Contact Energy secured Financing for the 168MWdc KÅwhai Park Solar Farm in Christchurch, New Zealand. The Debt package is arranged as a Green Financing Loan, with Westpac, Mizuho, China Construction Bank, and Intesa Sanpaolo, jointly Underwriting it.
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