U.S. Onshore Wind Assets Transfer to BP
BP's US onshore wind business, BP Wind Energy North America Inc., is set to change hands. The company has agreed to sell the business to LS Power, a move that is expected to close by the end of 2025, pending regulatory approvals.
Once the transaction is complete, BP Wind Energy will become part of LS Power's portfolio company, Clearlight Energy. This acquisition will significantly increase Clearlight Energy's operating fleet, bringing it up to approximately 4.3 GW.
BP Wind Energy's portfolio includes 10 grid-connected wind assets across seven US states. These assets, with a combined gross generating capacity of 1.7 GW, will supply power to over 15 off-takers. The sale does not specify the total net capacity of BP Wind Energy's assets under LS Power's control.
BP's Executive Vice President for Gas & Low Carbon Energy, William Lin, emphasised that although the onshore wind assets and personnel are excellent, BP no longer considers itself the best owner to advance this portfolio. LS Power, on the other hand, plans to meet growing US energy demand through this acquisition, integrating the assets into its wider renewable, energy storage, and flexible gas portfolio.
This sale is part of BP's strategy to refocus on growing its oil and gas business. The company's new strategy reduces low carbon energy to less than 5% of the company's capex allocation. However, BP's commitment to low carbon energy remains, and the company will continue to invest in this sector, albeit with a more strategic approach.
As part of this strategy, BP plans to divest around $20 billion by the end of 2027. The sale of BP Wind Energy is a part of this divestment plan, which aims to rationalise and optimise the company's portfolio to generate value.
Paul Segal, CEO of LS Power, stated that the acquisition represents a "material investment" in solving complex energy problems and improving the world. This acquisition follows LS Power's earlier move this year, when it acquired Algonquin Power & Utilities' renewable energy business to launch Clearlight Energy.
This sale marks a significant step in BP's strategic shift away from renewables towards focusing more on oil and gas production and reducing clean energy expenditures. It remains to be seen how this move will impact the renewable energy sector in the US and beyond.
References
[1] BP Wind Energy to be sold to LS Power (2025). www.bp.com
[2] LS Power to acquire BP's US onshore wind business (2025). www.ls-power.com
[3] BP's new strategy: Focus on oil and gas, divest $20 billion (2025). www.reuters.com
[4] BP's sale of US onshore wind business aligns with new strategy (2025). www.bloomberg.com
After BP agrees to sell its US onshore wind business, BP Wind Energy North America Inc., to LS Power, the renewable energy assets will be integrated into LS Power's portfolio company, Clearlight Energy, expanding it to approximately 4.3 GW. The finance sector is expected to play a crucial role in facilitating this acquisition, which aligns with BP's strategy to reduce its clean energy expenditures and refocus on oil and gas production.
