BP offloads US wind farms in continued retreat from green energy
The sale to LS Power should help the FTSE 100 oil and gas group towards its target of $20 billion of divestments by 2027. It is seeking to shore up its heavily indebted balance sheet, including through asset sales of $3 billion to $4 billion this year.
The sale of the US wind farms began in September last year, with BP saying at the time that the assets were 'not aligned' with its plans for growth in its solar venture Lightsource BP.
Murray Auchincloss, chief executive, then pledged in February to 'fundamentally reset' BP's strategy, has abandoned most of the green energy goals set under his predecessor Bernard Looney and refocused the company on focus on oil and gas.
BP declined to disclose the value of the wind farms deal but promised to give further details as part of its second-quarter results in early August.
Irene Himona, analyst at Bernstein, said: 'Using 2024 average global renewables transaction multiples as a reference point, we estimate the deal consideration could reach circa $2.2 billion or above.'
However, sources indicated the value was likely to be significantly lower than this, as the global averages did not reflect prices for ageing assets in the American market.
BP is also looking to sell its Castrol lubricants business and a stake in Lightsource BP. It has already announced a deal this month to offload its petrol stations in the Netherlands for an undisclosed sum, thought to be in the hundreds of millions of dollars.
BP has global operations including drilling for new oil and gas discoveries and retailing fuel and Marks & Spencer convenience food. It reported underlying profits of $8.9 billion last year.
Its US wind farm business comprises ten operational wind farms that were mostly built or acquired in the mid to late 2000s as part of BP's first push into green energy. Lord Browne of Madingley, when chief executive, established 'BP Alternative Energy' in 2005 as the oil giant promised to go 'Beyond Petroleum'.
BP wholly owns five of the wind farms, in Indiana, Kansas and South Dakota, and has 50 per cent stakes in five others in Colorado, Indiana, Pennsylvania, Idaho and Hawaii.
They have a total generating capacity of 1.7 gigawatts and BP's share is 1.3 gigawatts.
William Lin, BP's executive vice-president for gas and 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.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
an hour ago
- The Independent
How Delta amenity kits changed across the decades, from shoehorns to spa-grade toiletries
The golden age of air travel is long gone, but the business-class amenity kit is one luxury introduced in that era between the 50s and 70s that is still with us. Delta introduced it in 1978, at the tail end of the period, and has been keeping a photographic record of its evolution. The fascinating pictures serve as time capsules that offer insights into aircraft etiquette of the day and reveal how amenity kits went from being merely practical to designer collectibles. First, we step back in time, to an age long before AI pricing and online check-ins, when according to the amenity kits, fuzz-free clothing and being able to remove one's shoes with ease were the priorities for wealthy fliers. 1978 Delta's first amenity kits arrived in 1978, when the carrier was using Boeing 747s and Lockheed TriStars for long-haul travel. One of the kits featured a white bag, Pepsodent toothpaste, a comb, hand lotion, a hand towel, and a large nail file. Yes, doing your nails mid-flight was a top priority. Another brown and beige offering featured Michaud shaving cream and hand and body lotion, along with a razor and eye mask. Milestones for the carrier in the 70s included the introduction of the first transatlantic service from Atlanta to London, and audio in-flight entertainment. 1985 Notable inclusions of the 1985 amenity kit were a lint mitt for removing clothing fluff and dust and a shoehorn. Bizarre? Not really, this was, after all, a time when people would don formal attire to fly business class, a concept alien to today's tracksuit-wearing one-percenters. The goody bag also contained a toothbrush kit, shave cream, mouthwash and moisturizing lotion, along with a comb and a nail file. By this time, Delta had introduced computer-generated boarding and automated advance seat selection. 1987 This picture shows a 1987 amenity kit, which includes a pair of blue Delta slippers, with the rest of the kit unchanged. In this year, Western Airlines merged with Delta, making it the fourth-largest US carrier and the fifth-largest world carrier, with new hubs in Los Angeles and Salt Lake City. It was also the year that Delta began trans-Pacific services to Tokyo. 1995 In 1995, the amenity kit took a step up, with Delta partnering with Essentiel Elements, known for its spa-grade toiletries. The kit included an aromatherapy towelette by the firm, along with a 'disc case' for CDs (remember those?), and Rembrandt toothpaste and mouth rinse. By that time, Delta had purchased Pan Am and introduced onboard recycling. And in 1995, Delta introduced the airline industry's first seasonal menus and became the first US airline to ban smoking on all flights worldwide. 1996 In 1996, Delta's business-class customers were treated to an enticing bundle, with Essential Elements lotions and potions still in place. In that year, a Delta plane carried the Olympic flame from Athens to Los Angeles for the 1996 Torch Relay to Atlanta. Watershed moments, meanwhile, were customers being able to make reservations and purchase tickets via Delta's website, SkyLinks, and Delta becoming the first airline to offer in-seat power and live broadcast television programming. 2001 This tin of delights, which included L'Occitane creams, arrived in 2001. This year also saw Delta install self-service airport kiosks, allowing customers to check-in and print boarding passes. 2006 The year 2006 saw the introduction of a vibrant red amenity kit with Lather products and playful inscriptions, such as "do not disturb, save me a snack" on a privacy notice. And in 2006 Delta became the first major airline with in-seat, on-demand movies, games and live TV on a large portion of its domestic fleet. Another first was the introduction of Delta flights to southern Africa, with a service to Johannesburg via Dakar, Senegal, launched. 2007 Lather products also featured in the blue and red 2007 amenity kit. The look of the airline changed in this year, with the carrier adopting a new three-dimensional red widget logo and livery. And an open skies agreement between the US and the European Union paved the way for services to Heathrow, which would launch the following year. New for 2025 Delta is rolling out "collectible" new amenity kits by Missoni in the fall "designed to reflect the colors of the sky". These will come in blue and cream and include "crew-length" socks; a breathable eye mask; an "upgraded" pen featuring "metal accents and Delta One branding"; Grown Alchemist skincare products in "elevated aluminum tubes"; a bamboo toothbrush; Marvis toothpaste; and earplugs. Delta is also launching a new bedding set by Missoni.
The Guardian
an hour ago
- The Guardian
Company says investigation under way into footage of couple at Coldplay gig
Astronomer, the company at the center of the Coldplay scandal in which its CEO was caught canoodling with its chief human resources officer, has finally issued a statement on the matter. More than 24 hours after a Jumbotron camera at a Coldplay concert in Foxborough, Massachusetts, caught the software company's married CEO, Andy Byron, with his arms around the company's HR head, Kristin Cabot, Astronomer has responded to the incident which has taken the internet by storm. On X, the software startup company said: 'Astronomer is committed to the values and culture that have guided us since our founding. Our leaders are expected to set the standard in both conduct and accountability. The Board of Directors has initiated a formal investigation into this matter and we will have additional details to share very shortly.' It also denied rumors that another one of its employees, Alyssa Stoddard, was there, as well as denied false reports of Byron issuing an apology. 'Alyssa Stoddard was not at the event and no other employees were in the video. Andy Byron has not put out any statement, reports saying otherwise are all incorrect,' the company said. Both Byron and Cabot were immediately placed on leave, a source familiar with the situation told Axios. Additionally, Astronomer's delayed response has partially been because of Byron's slow resignation and exit package negotiations, another source told the outlet. Byron has been the head of Astronomer since 2023. In 2024, Cabot joined the company as its head of HR. In an announcement about Cabot's hiring, Byron said: 'Kristin's exceptional leadership and deep expertise in talent management, employee engagement and scaling people strategies will be critical as we continue our rapid trajectory.' Meanwhile, in the same press release, Cabot said: 'I was energised in my conversations with Andy and the Astronomer leadership team about the opportunities that exist here.' This article was amended on 19 July 2025. An earlier version said the Coldplay concert was in Boston, Massachusetts. In fact, it was at the Gillette Stadium in Foxborough, about 22 miles south-west of Boston.
Reuters
2 hours ago
- Reuters
US threatens Mexican airline flights over cargo, competition issues
WASHINGTON, July 19 (Reuters) - The Trump administration said on Saturday it is taking a series of actions against Mexico over the Mexican government's decisions to rescind some flight slots for U.S. carriers and force U.S. cargo carriers to relocate operations in Mexico City. U.S. Transportation Secretary Sean Duffy said in a statement the department could disapprove flight requests from Mexico if the government fails to address U.S. concerns over decisions made in 2022 and 2023. The department is also proposing to withdraw antitrust immunity from the Delta Air Lines (DAL.N), opens new tab joint venture with Aeromexico to address competitive issues in the market. Mexico is the most popular international destination among U.S. airline travelers. Delta said if the U.S. Department of Transportation withdraws approval it "would cause significant harm to consumers traveling between the U.S. and Mexico, as well as U.S. jobs, communities, and transborder competition." The Transportation Department said Mexico has not been in compliance with a bilateral air agreement since 2022 when it abruptly rescinded slots and then forced U.S. all-cargo carriers to relocate operations in 2023. Mexico's Transport Ministry and major Mexican airlines, including Aeromexico, could not be immediately reached for comment. Duffy said Mexico was expected to complete construction to alleviate congestion at Mexico City's Benito Juarez International Airport (MEX), but that has yet to materialize three years later. "By restricting slots and mandating that all-cargo operations move out of MEX, Mexico has broken its promise, disrupted the market, and left American businesses holding the bag for millions in increased costs," the department said. The USDOT also said it could take action against European countries over limitations at airports. "We are monitoring European States to ensure that they apply the Balanced Approach process for noise abatement at their airports and do not implement unjustified operational restrictions," the department said. The Transportation Department issued a pair of orders requiring Mexican airlines to file schedules with the department for all their U.S. operations by July 29 and requiring prior U.S. approval before operating any large passenger or cargo aircraft charter flights to or from the United States. "Mexico has altered the playing field significantly for airlines in ways that reduce competition and allow predominant competitors to gain an unfair advantage in the U.S.-Mexico market," the department said. "Mexico's actions harm airlines seeking to enter the market, existing competitor airlines, consumers of air travel and products relying on time-sensitive air cargo shipments traded between the two countries, and other stakeholders in the American economy.' If the U.S. rescinds antitrust approval for Delta and Aeromexico, they would be required to discontinue cooperation on common pricing, capacity management, and revenue sharing, but Delta would also be able to retain its equity stake in Aeromexico, maintain all of its existing flying in the U.S.-Mexico market unimpeded and continue a partnership.
