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7 days ago
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Big Oil Rethinks Renewable Investments
BP has sold its onshore wind power business in the United States. The news comes amid a steady flow of reports that both wind and solar companies are in major trouble, thanks to President Trump's energy agenda and a small but meaningful Republican majority in Congress. It is the latest in a string of developments that raise questions about the financial sustainability of transition energy projects. For BP, the move represents another step away from wind and solar and back to oil and gas, as indicated by the company's senior management repeatedly over the past year. In the broader industry context, it is indicative of the overall retreat of Big Oil from business ventures that do not yield the expected profits, even with the subsidies that governments are willing to shower over businesses involved in wind and solar. '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.' BP's vice president for gas and low-carbon energy, William Lin said in comments on the news of the divestment. It involved a portfolio of 1.3 GW in already existing capacity, which will now join the portfolio of LS Power, the buyer. Indeed, BP has been clear that it is going back to what it does best and what makes it money, especially at a time of rife speculation in the media that the company should put itself up for sale and let Shell buy it because that's the tie-up that makes the most sense. Shell has denied the news, quite officially, but it is a fact that BP is not in as good a shape as it could be—and some are blaming its transition course, charted by now former CEO Bernard Looney. Under Looney, BP struck off into the green direction with determination and a whole new set of priorities. The company promised to decarbonize fast and furiously and go from being a Big Oil major to a Big Power major in a matter of a few short years. It did not work. Less than five years after the initial announcement of the green pivot, BP scrapped its ambition to boost its power generation from wind and solar 20-fold by 2030 and abandoned earlier plans to reduce oil and gas production to cut emissions this year. All this happened early in the year as evidence mounted that wind and solar may be a noble goal, but they are not a money-making business, at least not on the scale that oil and gas generate profits. Then the Trump factor came on stage, and it came with a bang. The U.S. president has made no secret of his aversion to wind power, and one of the first things he did when he came into office was to suspend new turbine construction, likely causing major panic among developers who assumed their projects would be secure. Indeed, there is sound reason for panic. A recent report by Enverus found that just 57% of wind power projects in the United States would survive the One Big, Beautiful Bill. This means that as much as 43% are under threat of getting destroyed by the end of subsidies, but solar is doing even worse – Enverus estimated that just 30% of solar capacity is resilient to the end of subsidies. It appears BP's management is acutely aware of these developments. It is also on course to generate $20 billion from various divestments per strategic plans made public earlier this year. For this year, the divestment target is between $3 and $4 billion, with $1.5 billion already completed by April. The company did not disclose the size of the wind divestment deal. Meanwhile, BP is moving back to Libya, which it left along with other supermajors when the civil war broke out over a decade ago. Earlier this month, the company signed a preliminary deal with the National Oil Corporation for the redevelopment of two big fields in the Sirte Basin. BP will also reopen its office in the country by the end of the year, the Financial Times reported. Out of wind and solar and back to oil and gas, the course seems to be for Big Oil. Yet this is not the complete picture. The supermajors have invested heavily into their diversification into things like power generation from low-carbon sources, carbon capture, and other alternative energy sources, mostly under pressure from governments but also, probably, out a genuine desire to diversify in order to become more resilient in the long run. The problem with the wind and solar venture was that it did not generate the returns its advocates promised. Wind and solar energy were to be simultaneously cheap for the consumers and profitable for the producers, even though the two were mutually exclusive by definition. Big Oil has realized this. BP's divestment is the latest acknowledgment of the fact. But not all is lost for the transition fans. TotalEnergies just announced a major wind power project in Kazakhstan. By Irina Slav for More Top Reads From this article on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
21-07-2025
- Business
- Yahoo
LS Power to acquire BP's onshore wind business in US
LS Power has entered a definitive agreement to acquire BP's onshore wind business in the US, BP Wind Energy North America. The acquisition will strengthen LS Power's renewable energy portfolio by adding 1,700MW gross or 1,300MW net ownership of operating onshore wind capacity across ten assets. These assets will be integrated into LS Power's current fleet that includes renewable, energy storage, flexible gas and renewable fuels assets. LS Power has an operating portfolio of 21GW and more than 780 miles of high-voltage transmission lines in operation, in addition to more than 350 miles under construction or development. Upon completion of the acquisition, BP Wind Energy will be owned and operated as part of Clearlight Energy, LS Power's portfolio company that specialises in renewable power generation across the US and Canada. The deal will expand Clearlight Energy's operating fleet to 4.3GW while diversifying its operations beyond its current mix of wind, solar and battery storage capabilities. LS Power CEO Paul Segal stated: 'LS Power's mission is to solve complex energy problems to improve the world and make lives better by developing a cleaner, more reliable and affordable energy ecosystem, and today's announcement represents a material investment in reaching that goal. 'As an integrated business, bp Wind Energy is a natural addition to Clearlight Energy's growing portfolio of scaleable solutions that will broaden our reach geographically and support our strategy to make energy more efficient, affordable and available.' The acquired assets, spanning Colorado, Hawaii, Idaho, Indiana, Kansas, Pennsylvania and South Dakota, currently supply power to more than 15 off-takers. The transaction is anticipated to close by the end of 2025, pending regulatory approvals. Greenberg Traurig acted as legal advisor while Barclays and Santander provided financial advisory services for LS Power for the transaction. BP gas and low carbon energy EVP William Lin stated: 'We have been clear that while low carbon energy has a role to play in a simpler, more focused BP, we will continue to rationalise and optimise our portfolio to generate value. '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.' In May 2025, NRG Energy finalised a definitive agreement to acquire the natural gas generation facilities owned by LS Power Equity Advisors in a $12bn deal. "LS Power to acquire BP's onshore wind business in US" was originally created and published by Power Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19-07-2025
- Business
- Yahoo
LS Power Acquiring bp's U.S. Onshore Wind Business
A leading developer of North American power and energy infrastructure projects said it has an agreement to acquire several U.S. onshore wind farms from a UK-based energy group. LS Power and bp Wind Energy North America announced the deal on July 18. LS Power said the deal comprises about 1,700 MW of operating onshore wind power generation capacity from 10 projects. LS Power, headquartered in New York, said the assets will be added to the company's existing fleet of renewable, energy storage, flexible gas, and renewable fuels assets, which comprises a 21,000-MW operating portfolio, and more than 780 miles of high-voltage transmission lines. LS Power also has another 350-plus miles of transmission infrastructure currently under construction or development. The transaction is expected to close by the end of 2025. Once the acquisition is complete, bp Wind Energy will be owned and operated as part of LS Power portfolio company Clearlight Energy, which focuses on renewable power generation in the U.S. and Canada. The deal will increase Clearlight Energy's operating fleet to about 4,300 MW. LS Power said the purchase will further diversify Clearlight's operations beyond that company's existing wind, solar, and battery storage fleet. 'LS Power's mission is to solve complex energy problems to improve the world and make lives better by developing a cleaner, more reliable, and affordable energy ecosystem, and today's announcement represents a material investment in reaching that goal,' said Paul Segal, CEO of LS Power. 'As an integrated business, bp Wind Energy is a natural addition to Clearlight Energy's growing portfolio of scalable solutions that will broaden our reach geographically and supports our strategy to make energy more efficient, affordable and available.' William Lin, bp EVP for gas & low carbon energy, said, '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. The onshore U.S. 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.' The bp wind farms are located in Indiana, Kansas, South Dakota, Colorado, Pennsylvania, Hawaii, and Idaho. They provide electricity for more than 15 off-takers. The 10 facilities included in the deal are: Fowler Ridge 1, Indiana: 288 MW gross capacity. Fowler Ridge 3, Indiana: 99 MW gross capacity. Flat Ridge 1, Kansas: 44 MW gross capacity. Flat Ridge 2, Kansas: 470 MW gross capacity. Titan, South Dakota: 25 MW gross capacity. Cedar Creek 2, Colorado: 248 MW gross capacity. Fowler Ridge 2, Indiana: 200 MW gross capacity. Mehoopany, Pennsylvania: 141 MW gross capacity. Auwahi, Hawaii: 21 MW gross capacity. Goshen 2, Idaho: 125 MW gross capacity. 'We are excited to welcome bp Wind Energy to the Clearlight Energy family as we work to execute on a long-term value creation and growth strategy that will help accelerate the transition to a cleaner future,' said Jeff Norman, CEO of Clearlight Energy. 'As part of an organization entirely focused on natural energy solutions, bp Wind Energy will have the resources it needs to reach its full potential while our talented, complementary teams will benefit from our enhanced set of collective capabilities and expertise.' Said Segal, '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. Well-located with well-structured contracts, these new assets will expand our renewable energy presence and help to meet growing energy demand across the U.S. We look forward to welcoming the talented teams operating these assets to LS Power and partnering with them to drive value for our stakeholders.' —Darrell Proctor is a senior editor for POWER. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
19-07-2025
- Business
- Yahoo
LS Power Acquiring bp's U.S. Onshore Wind Business
A leading developer of North American power and energy infrastructure projects said it has an agreement to acquire several U.S. onshore wind farms from a UK-based energy group. LS Power and bp Wind Energy North America announced the deal on July 18. LS Power said the deal comprises about 1,700 MW of operating onshore wind power generation capacity from 10 projects. LS Power, headquartered in New York, said the assets will be added to the company's existing fleet of renewable, energy storage, flexible gas, and renewable fuels assets, which comprises a 21,000-MW operating portfolio, and more than 780 miles of high-voltage transmission lines. LS Power also has another 350-plus miles of transmission infrastructure currently under construction or development. The transaction is expected to close by the end of 2025. Once the acquisition is complete, bp Wind Energy will be owned and operated as part of LS Power portfolio company Clearlight Energy, which focuses on renewable power generation in the U.S. and Canada. The deal will increase Clearlight Energy's operating fleet to about 4,300 MW. LS Power said the purchase will further diversify Clearlight's operations beyond that company's existing wind, solar, and battery storage fleet. 'LS Power's mission is to solve complex energy problems to improve the world and make lives better by developing a cleaner, more reliable, and affordable energy ecosystem, and today's announcement represents a material investment in reaching that goal,' said Paul Segal, CEO of LS Power. 'As an integrated business, bp Wind Energy is a natural addition to Clearlight Energy's growing portfolio of scalable solutions that will broaden our reach geographically and supports our strategy to make energy more efficient, affordable and available.' William Lin, bp EVP for gas & low carbon energy, said, '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. The onshore U.S. 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.' The bp wind farms are located in Indiana, Kansas, South Dakota, Colorado, Pennsylvania, Hawaii, and Idaho. They provide electricity for more than 15 off-takers. The 10 facilities included in the deal are: Fowler Ridge 1, Indiana: 288 MW gross capacity. Fowler Ridge 3, Indiana: 99 MW gross capacity. Flat Ridge 1, Kansas: 44 MW gross capacity. Flat Ridge 2, Kansas: 470 MW gross capacity. Titan, South Dakota: 25 MW gross capacity. Cedar Creek 2, Colorado: 248 MW gross capacity. Fowler Ridge 2, Indiana: 200 MW gross capacity. Mehoopany, Pennsylvania: 141 MW gross capacity. Auwahi, Hawaii: 21 MW gross capacity. Goshen 2, Idaho: 125 MW gross capacity. 'We are excited to welcome bp Wind Energy to the Clearlight Energy family as we work to execute on a long-term value creation and growth strategy that will help accelerate the transition to a cleaner future,' said Jeff Norman, CEO of Clearlight Energy. 'As part of an organization entirely focused on natural energy solutions, bp Wind Energy will have the resources it needs to reach its full potential while our talented, complementary teams will benefit from our enhanced set of collective capabilities and expertise.' Said Segal, '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. Well-located with well-structured contracts, these new assets will expand our renewable energy presence and help to meet growing energy demand across the U.S. We look forward to welcoming the talented teams operating these assets to LS Power and partnering with them to drive value for our stakeholders.' —Darrell Proctor is a senior editor for POWER.
Yahoo
19-07-2025
- Business
- Yahoo
BP Sells US Wind Portfolio In $20 Billion Divestment Push
BP plc (NYSE:BP) announced Friday that it will sell its entire U.S. onshore wind energy portfolio to LS Power, a New York-based energy infrastructure firm. This move is part of a broader strategy to streamline operations and prioritize targeted low-carbon investments. The deal covers 10 wind farms across seven states with a total capacity of 1.3 gigawatts. This move is part of BP's $20 billion divestment plan, which aims to refocus capital allocation. William Lin, executive vice president for gas and low carbon energy at BP, said the assets and workforce were strong, but the company concluded that 'we are no longer the best owners to take it forward.' He expressed confidence in LS Power's ability to scale the wind business while supporting bp's transitioning staff. Also Read: LS Power plans to integrate the wind projects into its clean energy portfolio, which already spans 21GW of power generation and extensive transmission infrastructure. Paul Segal, CEO of LS Power, described the acquisition as a strategic expansion to meet rising energy demand through well-contracted renewable assets. The sale is expected to close by year-end, pending regulatory approvals. So far in 2025, BP has completed or signed $1.5 billion in divestments and aims to hit $3–4 billion by year-end, with further updates due in its second-quarter earnings report. This decision follows BP's recent warning about a potential earnings dip tied to sliding oil prices, highlighting the company's pivot toward more resilient and efficient operations. Investors may also consider the iShares Global Clean Energy ETF (NASDAQ:ICLN) and the First Trust Global Wind Energy ETF (NYSE:FAN) for broader exposure. Price Action: At the last check on Friday, BP shares were trading higher by 0.31% to $32.19 premarket. Read Next:Photo by Tada Images via Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? BP (BP): Free Stock Analysis Report This article BP Sells US Wind Portfolio In $20 Billion Divestment Push originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
