BP to sell U.S. wind business

BP has agreed to sell its U.S. onshore wind business, BP Wind Energy North America, including its Indiana wind farms, to LS Power.

LS Power is a development, investment and operating company focused on the North American power and energy infrastructure sector. The transaction includes BP’s U.S. onshore wind energy business, comprised of operating wind assets with a total generating capacity of 1.3GW net.

The deal is expected to conclude by year’s end. It follows a competitive bidding process. After close, BP Wind Energy will be owned and operated as part of LS Power portfolio company Clearlight Energy, increasing its operating fleet to about 4.3GW.

BP Wind Energy has been marketed as an integrated business. Its workforce is expected to transfer to the new owner on completion of the deal. The business has interests in 10 onshore wind energy assets across seven US states, operating nine of them. All wind assets are grid connected and are providing power to over 15 off-takers.

“We have been clear that while low carbon energy has a role to play in a simpler, more focused BP, we will continue to rationalize and optimize our portfolio to generate value,” said William Lin, BP executive vice president for gas and low carbon energy, in a press release. “The onshore U.S. wind business has great assets and fantastic people, but we have concluded we are no longer the best owners to take it forward.”

LS Power will add BP’s U.S. onshore wind business to an existing fleet of renewable, energy storage, flexible gas and renewable fuels assets. LS Power has a 21GW portfolio and over 780 miles of high-voltage transmission lines in operation as well as another 350+ miles currently under construction or development.

“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,” Paul Segal, LS Power CEO, said. “Well-located with well-structured contracts, these new assets will expand our renewable energy presence and help to meet growing energy demand across the U.S.”

Author

  • Kerry Sapet
    Kerry Sapet has been a freelance writer for more than 20 years. She has written for newspapers, magazines, websites and the children’s publishing market. Sapet is the author of more than 30 books for children and young adults. She has a degree in journalism from Ohio University’s Honors Tutorial College. Sapet is a Bloomington, Indiana, native, and lives in the Chicago area.
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