BP has agreed to sell its US onshore wind business to LS Power.
After close, 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.
BP Wind Energy has been marketed as an integrated business, with its workforce expected to transfer to the new owner on completion of the deal.
The business 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). All wind assets are grid-connected and are already providing power to over 15 off-takers.
BP executive vice president for gas and low carbon energy William Lin 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.”
LS Power will add BP’s US onshore wind business to an existing fleet of renewable, energy storage, flexible gas and renewable fuels assets, which comprise a 21GW operating portfolio and more than 780 miles of high-voltage transmission lines in operation. Another 350-plus miles are currently under construction or development.
LS Power chief executive Paul Segal said: “We are focused on a holistic approach to advancing American energy infrastructure that includes improving existing energy assets while investing in transformative strategies that make energy more efficient, affordable and available.
“Well-located with well-structured contracts, these new assets will expand our renewable energy presence and help to meet growing energy demand across the US.
“We look forward to welcoming the talented teams operating these assets to LS Power and partnering with them to drive value for our stakeholders.”
The deal is expected to conclude by the end of the year, subject to regulatory approvals. It is the latest example of BP’s $20bn divestment programme to “simplify and focus” the business.
The 10 onshore wind assets include large-scale projects such as Fowler Ridge in Indiana (pictured).