BP to Sell U.S. Wind Assets, Focus Shifts to Solar & Oil

BP PLC (BP:US) has recently announced plans to sell its U.S. onshore wind energy business, stating that the assets no longer align with its growth strategy. The company will soon begin the process of selling bp Wind Energy, which holds interests in 10 onshore wind projects across seven U.S. states.

"We believe these assets could deliver more value under a different owner," said William Lin, BP's executive vice president for gas and low-carbon energy.

This decision comes as several U.S. offshore wind projects have been delayed or renegotiated due to rising materials costs, higher interest rates, and supply chain challenges. BP’s wind assets, with a net generating capacity of 1.3 gigawatts, do not fit within its plans for expanding Lightsource bp, its solar energy arm. In November, BP announced it would fully acquire Lightsource bp, Europe's largest solar developer, aiming to strengthen its renewable energy portfolio by year-end.

Additionally, BP plans to consolidate its onshore renewable energy projects into Lightsource bp. This shift aligns with new CEO Murray Auchincloss's strategy to refocus on oil and gas, which has sparked concerns among investors who had supported the company’s previous push toward renewable energy under former CEO Bernard Looney.

This strategic pivot occurs as renewable energy projects face financial hurdles. For example, Danish firm Orsted recently reported significant losses due to delays in its U.S. offshore wind project.

Amid BP's strategic transition, several U.S. lawmakers were also seen adjusting their positions in the company's U.S. listed stock. Congressman Ro Khanna has made frequent changes to his stake in the oil and gas giant throughout the year, while Representative John James recently revealed that he sold his shares in BP PLC on September 4th.