BP to sell US onshore wind business to LS Power

(Sharecast News) - BP said on Friday that it has agreed to sell its US onshore wind business, BP Wind Energy, to LS Power, a development, investment and operating company focused on the North American power and energy infrastructure sector. No financial details were disclosed, but BP said that once the deal completes, BP Wind Energy will be owned and operated as part of LS Power portfolio company Clearlight Energy, increasing its operating fleet to around 4.3GW.

The business's workforce is expected to transfer to the new owner on completion of the deal.

BP Wind Energy has interests in 10 operating onshore wind energy assets across seven US states, operating nine of them.

The assets have a combined gross generating capacity of 1.7GW (1.3GW net to BP).

William Lin, BP's 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 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."

At 0935 BST, the shares were up 1.7% at 403.95p.

Dan Coatsworth, investment analyst at AJ Bell, said this marks BP's second asset disposal in as many weeks as the company tries to reshape for the future.

"Last week it bundled up various operations including 300 Dutch retail sites and 15 electric vehicle charging hubs in a sale to Catom," he said.

"These are only small assets in the grand scheme of things, and it will take a lot more, particularly on a larger scale, to truly win back the market's favour."