BP selling US onshore wind business as Lightsource adds turbines to remit
Lightsource BP JV to get expanded role for onshore renewables as oil giant aims to divest 1.3GW of turbine capacity
Oil giant BP has put its US-based operating onshore wind business up for sale and said its future onshore renewables operation will be focused on Lightsource BP, which will take on an additional role as a developer of wind as well as solar power.
BP will launch a sale process soon for its US onshore wind assets, which comprise a total generating capacity of 1.7GW across seven states, 1.3GW of that net to BP.
The UK-based supermajor aims to sell the onshore operation as an integrated business, stressing its experienced workforce and grid-connected projects that supply a range of offtakers.
The largest single project in the list is the 470MW Flat Ridge 2 wind farm in Kansas. BP has had a position in US onshore since the very earliest days of its forays into renewable energy in the 2000s, and has put the assets up for sale on at least one previous occasion.
Last November, BP completed a $100m capital investment to upgrade 40 Vestas turbines at its Fowler Ridge I facility in Indiana, one of three farms there that is the division's largest combined US onshore wind footprint with 355 turbines.
Aside from Indiana and Kansas, BP has onshore wind assets in Colorado, Idaho, Pennsylvania, and South Dakota. The division is based in Houston where BP has a remote operations centre that monitors its wind plants around the clock.
BP simultaneously announced a significant expansion in the role of its Lightsource BP joint venture, which has so far only developed solar PV.
The company, which has brought about 10GW of PV online, will now add onshore wind to that list, becoming what BP said will be a “world-class developer of cost-competitive, utility-scale renewable power assets worldwide for both solar and onshore wind”.
William Lin, BP’s executive vice president for gas & low carbon energy said: “Renewables are an important part of our strategy as bp transitions to an integrated energy company.
“BP Wind Energy’s assets are high-quality and grid-connected but are not aligned with our plans for growth in Lightsource BP. We believe the business is likely to be of greater value for another owner. This planned divestment is part of our strategy of continuing to simplify our portfolio and focus on value.”
On 1 January, BP ranked 22nd among clean energy asset owners in the US with 2.47GW of capacity that included 1GW of onshore wind, 1.45GW of utility-scale solar, and 6MW of battery storage, according to American Clean Power Association, a national trade group.
ACP did not explain the discrepancy between its onshore wind number and the higher one from BP.
Like other fossil fuel giants, BP is reassessing the role of renewables in its business after a surge into green power under former CEO Bernard Looney.
BP also has a significant global presence in offshore wind, including in the US via its Beacon Wind projects.