BP offloads US onshore wind business as it pivots back to oil
has struck a deal to offload its US
onshore wind
business to LS Power, as the FTSE 100 energy major pushes ahead with its pivot back towards fossil fuels in a bid to revive its share price.
The wind farms, spread across seven states, are all operational and have a combined capacity of 1.7GW, of which BP owns 1.3GW.
The sale is the latest move in a $20 billion (€17 billion) divestment programme, announced by BP in February, to streamline its business and boost returns to shareholders after a period of lacklustre performance.
READ MORE
The terms of the deal, announced on Friday, were not disclosed. In April, BP said it had signed or completed $1.5 billion of divestments already in 2025 and expected to raise a total of $3 billion to $4 billion from asset sales over the course of the year.
Some previous estimates have valued the BP's US onshore wind business at as much as $2 billion. However, pricing for recent transactions involving US wind farms of a similar age suggests the value is likely to be lower.
BP said the deal followed a 'competitive' 10-month auction process.
[
Shell denies takeover talk, but BP's woes persist
Opens in new window
]
After completion of the transaction, which is expected before the end of the year, BP Wind Energy will form part of LS Power's subsidiary Clearlight Energy, increasing the North American energy group's operating fleet to about 4.3GW.
The move comes as BP seeks refocus on its core oil and gas operation.
William Lin, the company's executive vice-president for gas and low-carbon energy, said on Friday that green energy still 'has a role to play' in its portfolio, adding: '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.'
David McWilliams on how 'big incentives' to build could save Dublin city
Listen |
36:51
The UK oil major put the wind energy business up for sale last September. At the time, Lin said the onshore wind business was 'not aligned' with BP's plans for growth in Lightsource bp, its solar energy business.
BP is also exploring a sale of its lubricants arm Castrol, which has drawn interest from private equity and industry bidders and could be valued at $8bn, though some parties are considering making lower bids, the Financial Times reported in June.
Over the past 12 months, BP's share price has fallen more than 10 per cent, sparking speculation that it could be ripe for a takeover. Activist investor Elliott Management has built a stake and been pressuring the board to shake up the business.
Last month, rival Shell was forced to deny rumours that it was planning a bid for BP, saying it had 'no intention' of making an offer for the company.
This month, BP warned that lower oil and gas prices were likely to hit second-quarter earnings, despite it increasing production. The company said it expected earnings in its oil business to be $600mn-$800mn lower in the three months to the end of June than the previous quarter, while gas would be between $100mn and $300mn lower.
BP's shares rose 1.9 per cent in morning trading. – Copyright The Financial Times Limited 2025
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Irish Independent
an hour ago
- Irish Independent
Any other business: Marty Morrissey takes his personal company unlimited –removing the requirement to file annual accounts with Companies Office
Plus an Irishman takes the helm at BP, the other Coveney brother, Shane Lowry's logos, and Phoenix Magazine's humble home Today at 00:30 Marty Morrissey is clearly fed up with nosey journalists snooping around in his accounts. Four years ago he set up Mutton Island Productions, a personal company, to handle the many nixers he does outside RTÉ – such as presenting awards and opening supermarkets.
Irish Times
2 hours ago
- Irish Times
Coalition warned against diluting contentious Occupied Territories Bill
The Government will be warned not to allow the potential for legal challenges to be used as an excuse to water down the legislation known as the Occupied Territories Bill . The Oireachtas foreign affairs committee will this week publish its report on a proposal to ban trade with illegally occupied territories in Palestine. The report, finalised on Friday, is understood to recommend widening the legislation to include a ban on services as well as goods. There have been stark warnings from business lobby groups that such a measure could damage the Republic's trading relationship with the US and cause economic harm to Irish businesses and households. The Occupied Territories Bill is now undergoing pre-legislative scrutiny Listen | 41:13 The committee will tell the Government to model the ban on trade with illegal settlements in Palestine on 2014 trade restrictions with Russia regarding illegally occupied territories in Ukraine. The committee, chaired by Fianna Fáil TD John Lahart , which did not have statistics on the volume of trade in services between the State and illegally occupied territories, will call on Minister for Trade Simon Harris to collate and publish such information. It will also tell Mr Harris to establish what kind of backlash the State would face in terms of trade and diplomacy should it ban trade with the occupied Palestinian territories. [ Republic joins 25 states urging end to Gaza war Opens in new window ] Ministers will also be advised to consider what defences could be available to a business charged with an offence under the proposed law. . It is understood that the committee believes further work is required from the Government before the law could be enacted. And it will ask that Attorney General Rossa Fanning's advice on the complex Bill is 'expedited' so it can move forward as a matter of urgency. During meetings before the Dáil rose for the summer recess, Mr Lahart was critical of 'misinformation' about the Bill and the State's motivation for passing it – much of which was repeated by senior US political figures. Chairwoman of US House Republicans Lisa McClaine described the Bill as a type of 'extreme anti-Semitic hate'. [ How life in the West Bank is deteriorating for Palestinians Opens in new window ] It is understood that the committee's report will call on the Government to explain the motivation behind the Bill to European Union and international colleagues, while also lobbying Brussels for further collective EU action against Israel. The committee will propose a Government-funded public communications campaign for domestic and international audiences to explain the facts of the Bill and to challenge misinformation spread about it.
RTÉ News
4 hours ago
- RTÉ News
Trump, EU's von der Leyen to meet to clinch trade deal
European Commission President Ursula von der Leyen is set to meet US President Donald Trump to clinch a trade deal for Europe that would likely see a 15% baseline tariff on most EU goods, but end months of uncertainty for EU companies. Before the meeting, expected at around 4pm on Mr Trump's golf course in Turnberry, western Scotland, US and EU teams were in final talks on tariffs for crucial sectors like cars, steel, aluminium or pharmaceuticals. US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick flew to Scotland yesterday and EU Trade Commissioner Maroš Šefčovič arrived this morning. Mr Lutnick said that the EU must open its markets for US exports in order to convince Mr Trump to reduce a threatened 30% tariff rate due to kick in on 1 August. He added that the EU clearly wanted to make a deal. "The question is, do they offer President Trump a good enough deal that is worth it for him to step off of the 30% tariffs that he set," Mr Lutnick told 'Fox News Sunday,' adding that Mr Trump was looking to increase access for US firms. He said the ultimate decision would be up to Mr Trump, who has said there is a 50:50 chance a deal can be reached with the EU. Mr Lutnick said the US tariff deadline of 1 August is firm and that there would be no extensions. "So no extensions, no more grace periods. 1 August, the tariffs are set. They'll go into place. Customs will start collecting the money, and off we go." "We're cautiously optimistic that there will be a deal reached," said a Trump administration official, who spoke on condition of anonymity. "But it's not over till it's over." Ambassadors of EU governments, on a weekend trip to Greenland organised by the Danish presidency of the EU, held a teleconference with EU Commission officials to agree on the amount of leeway Ms von der Leyen would have in the talks. In case there is no deal and the US imposes 30% tariffs from 1 August, the EU has prepared counter-tariffs on €93 billion ($109 billion) of US goods. EU diplomats have said a deal would likely include a broad 15% tariff on EU goods imported into the US, mirroring the US-Japan trade deal, along with a 50% tariff on European steel and aluminium for which there could be export quotas. The EU deal would be a huge prize, given that the US and EU are each other's largest trading partners by far and account for a third of global trade. EU officials are hopeful that a 15% baseline tariff would also apply to cars, replacing the current 27.5% auto tariff. Possible exemptions Some expect the 27-nation bloc may be able to secure exemptions from the 15% baseline tariff for its aerospace industry and for spirits, though probably not for wine. The EU could also pledge to buy more liquefied natural gas from the US, a long-standing offer, and boost investment in the United States. Mr Trump told reporters there was "not a lot" of wiggle room on the 50% tariffs that the US has on steel and aluminium imports, adding, "because if I do it for one, I have to do it for all." The US President, in Scotland for a few days of golfing and bilateral meetings, told reporters upon his arrival on Friday evening that Ms von der Leyen was a highly respected leader and he was looking forward to meeting with her. He said that Brussels wanted to "make a deal very badly". The EU now faces US tariffs on more than 70% of its exports, with 50% on steel and aluminium, an extra 25% on cars and car parts on top of the existing 2.5% and a 10% levy on most other EU goods. Mr Trump has said that without a deal, he would hike the rate to 30% on 1 August, a level EU officials said would wipe out whole chunks of transatlantic commerce. Further tariffs on copper and pharmaceuticals are looming. The uncertainty and higher tariffs have already hit profits of EU companies in several sectors. A 15% tariff on most EU goods would remove uncertainty but would be seen by many in Europe as a poor outcome compared to the initial European ambition of a zero-for-zero tariff deal on all industrial goods. Seeking to learn from Japan, which secured a 15% baseline tariff with the US in a deal earlier this week, EU negotiators spoke to their Japanese counterparts in preparation for Sunday's meeting. For Mr Trump, aiming to reorder the global economy and reduce decades-old U.S. trade deficits, a deal with the EU would be the biggest trade agreement, surpassing the $550 billion deal with Japan. So far, he has reeled in agreements with the UK, Japan, Indonesia and Vietnam, although his administration has failed to deliver on a promise of "90 deals in 90 days."
