BP to Sell US Onshore Wind Business to LS Power

BP has agreed to sell its U.S. onshore wind unit, BP Wind Energy North America, to LS Power. The deal is part of BP's focus on its low carbon energy portfolio. After the deal's completion, the business will become part of LS Power.

BP Plc has agreed to sell its U.S. onshore wind business, BP Wind Energy, to LS Power. This move is part of BP's broader strategy to refocus its portfolio and prioritize targeted low-carbon investments. The deal is expected to be completed by the end of the year, pending regulatory approvals [1].

The sale covers 10 wind farms across seven states, with a total capacity of 1.3 gigawatts. BP's executive vice president for gas and low carbon energy, William Lin, stated that while the assets and workforce are strong, BP has concluded that "we are no longer the best owners to take it forward" [2]. LS Power, a closely held New York-based energy developer, will own and operate the wind business under its Clearlight Energy portfolio company [1].

BP's decision to divest its onshore wind business follows its recent focus on its core oil and gas business and comes after years of share underperformance. The company aims to reduce debt and improve its balance sheet through asset sales, with a target of $20 billion in divestments by 2027 [3]. BP shares rose 1.8% to 404 pence at 9:08 a.m. in London following the announcement [1].

LS Power plans to integrate the wind projects into its clean energy portfolio, which already spans 21 gigawatts of power generation and extensive transmission infrastructure. The acquisition is seen as a strategic expansion to meet rising energy demand through well-contracted renewable assets [3].

This sale is part of BP's broader divestment program, which has seen the company complete or sign $1.5 billion in divestments so far in 2025, with further updates due in its second-quarter earnings report. The company's shares have continued to underperform most of its rivals this year, while the oil major faces pressure from activist investors [4].

References:
[1] https://www.reuters.com/business/energy/bp-sells-us-onshore-wind-business-ls-power-2025-07-18/
[2] https://news.bloomberglaw.com/mergers-and-acquisitions/bp-agrees-to-sell-us-onshore-wind-business-to-ls-power
[3] https://sg.finance.yahoo.com/news/bp-sells-us-wind-portfolio-092338714.html
[4] https://theedgemalaysia.com/node/763208