BP offloads US onshore wind business as it pivots back to oil
BP has agreed to sell its US-based onshore wind operations to LS Power, as the British energy giant shifts further towards fossil fuels in an effort to boost its share value.
The portfolio includes wind farms located in seven different US states, all of which are active. The sites collectively generate 1.7 gigawatts, with BP owning a 1.3GW share.
This divestment is part of BP’s broader $20 billion asset disposal plan, initially unveiled in February, aimed at simplifying the business and increasing investor returns following a period of underperformance.
While financial details of the agreement, announced on Friday, have not been made public, BP revealed in April that it had already closed or signed deals worth $1.5 billion in 2025. It hopes to raise between $3 billion and $4 billion through divestitures by the year’s end.
Though some analysts have previously placed the value of BP’s onshore wind assets at up to $2 billion, more recent deals in the US market indicate that actual pricing may be lower, particularly for assets of a similar vintage.
According to BP, the sale follows a competitive bidding process that lasted ten months.
Once finalised – expected before year-end – the wind operations will be integrated into LS Power’s subsidiary, Clearlight Energy. This acquisition will grow the group’s North American energy capacity to around 4.3GW.
The sale aligns with BP’s strategic shift back to its core oil and gas focus.
William Lin, EVP of gas and low-carbon energy at BP, acknowledged on Friday that renewable power still has a place within the company’s overall strategy. He noted: “Our US onshore wind assets and the team behind them are exceptional, but we’ve decided we are not the best stewards for their future.”
BP began marketing the wind business last September, citing misalignment with its plans to expand its solar energy venture, Lightsource bp.
In a parallel development, BP is considering selling off its Castrol lubricants division, which could fetch as much as $8 billion. However, according to a June report by the Financial Times, some interested parties may submit lower offers, with private equity and strategic buyers among the suitors.
Over the last year, BP’s stock has declined by more than 10 per cent, fuelling speculation about a potential acquisition. Activist fund Elliott Management has taken a position in the company and is urging leadership to enact significant changes.
Just last month, competitor Shell dismissed market rumours of a BP takeover attempt, stating categorically that it had “no intention” of pursuing such a move.
Earlier in July, BP issued a warning that lower oil and gas prices were expected to dent its second-quarter profits, despite an uptick in production. The company estimated a decline of $600 million to $800 million in oil earnings, and a $100 million to $300 million drop in gas profits, compared with the first quarter.
Despite these challenges, BP’s shares edged up by 1.9 per cent during morning trading.
