BP has reached an agreement to divest its US onshore wind business, BP Wind Energy North America, to LS Power, a company specialising in power and energy infrastructure in North America.
The financial terms of the deal were not disclosed.
This transaction will transfer ownership and operation of BP Wind Energy to Clearlight Energy, a portfolio company under LS Power. It will expand Clearlight’s operational capacity to approximately 4.3GW.
The deal covers BP’s interests in 10 operating onshore wind energy assets spread across seven states. BP has operating stake in nine of these.
The assets have a combined gross generating capacity of 1.7GW, equating to 1.3GW net for BP. Presently, all the wind assets are connected to the grid and are supplying electricity to over 15 off-takers.
BP has marketed the sale as an integrated business, with the existing workforce anticipated to transition to LS Power upon completion.
Following the acquisition, LS Power plans to integrate BP’s wind assets into its existing and diverse portfolio of renewable energy, storage solutions, flexible gas, and renewable fuels. The company currently has a 21GW operating portfolio and over 1,255km of high-voltage transmission lines.
The expansion is expected to enhance Clearlight’s focus on renewable power generation within the US and Canada.
This transaction aligns with BP’s strategy to streamline its low carbon energy portfolio while maximising shareholder value. The sale is also part of BP’s ongoing $20bn divestment initiative aimed at simplifying and focusing its operations.
Regulatory approvals are still required, but the deal is expected to close by year-end.
BP Wind Energy’s assets include facilities such as Fowler Ridge 1 and 3 in Indiana, Flat Ridge 1 and 2 in Kansas, Titan in South Dakota, Cedar Creek 2 in Colorado, Mehoopany in Pennsylvania, Auwahi in Hawaii, and Goshen 2 in Idaho.
