UK Energy Firm bp to Sell its Wind Business to LS Power

The UK energy firm bp on Friday announced that it has agreed to sell its US onshore wind business, BP Wind Energy North America Inc. (bp Wind Energy), to LS Power, a leading development, investment and operating company focused on the North American power and energy infrastructure sector.

After close, bp Wind Energy will be owned and operated as part of LS Power portfolio company Clearlight Energy, increasing its operating fleet to over 4.3 GW. The deal is part of bp’s focusing of its low carbon energy portfolio, prioritizing investment choices whilst delivering value for shareholders, it said.

bp Wind Energy has been marketed as an integrated business, with its experienced workforce expected to transfer to the new owner on completion of the deal. The financial terms of the deal were not disclosed.

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 1.7 GW (1.3 GW net to bp). All wind assets are grid-connected and are already providing power to over 15 off-takers, the UK company said.

The deal is expected to conclude by the end of the year, subject to regulatory approvals. It is the latest example of bp’s $20 billion divestment program to simplify and focus the business.

Optimising bp Portfolio

William Lin, Executive Vice President, Gas & Low Carbon Energy, said that the company has been clear that while low carbon energy has a role to play in a simpler, more focused bp, they will continue to rationalise and optimise bp’s 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,” Lin said.

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 21 GW operating portfolio and more than 780 miles of high-voltage transmission lines in operation as well as another 350+ miles currently under construction or development.

LS Power CEO Paul Segal said that they were 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.

He added: “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.”

In its financial results for the first quarter of 2025, bp updated its divestment guidance to $3billion-4 billion for 2025, with $1.5 billion signed or completed to that date. Further progress on divestment proceeds will be provided as part of Q2 2025 results.