BP has agreed to sell its US onshore wind business to LS Power, as the oil company continues its retreat from renewable energy and refocuses on oil and gas. The deal covers BP's stake in ten windfarms, nine of which it operates, generating enough electricity to power more than 500,000 American homes.
Financial terms were not disclosed, but the value of the windfarms is understood to be lower than the $2bn (£1.5bn) valuation previously estimated for BP's onshore wind business. The sale is part of BP's plan to offload $20bn in assets to simplify and focus the business, after its former green strategy failed to revive the company's share price.
BP said it was "no longer the best owners" to take the wind business forward, with US renewable energy facing increasing political pressure under President Donald Trump. The agreement emerged weeks after Giulia Chierchia, one of the architects of BP's abandoned green agenda, stepped down from her role as executive in charge of sustainability strategy. She will not be replaced.
The company's struggles have left it vulnerable to takeover speculation. Shell last month denied market talk that it planned to buy its smaller rival, while activist hedge fund Elliott Management has amassed a stake in BP to push for strategic changes. Chief executive Murray Auchincloss is seeking to complete $3bn-$4bn of divestments this year, with $1.5bn of deals already agreed.
William Lin, head of BP's gas and low-carbon energy business, said: "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." Further progress on the divestment programme is expected when BP reports second-quarter results in early August, as the company also searches for a new chair to replace Helge Lund.
