BP to Sell U.S. Wind Business for $2bn

BP is preparing to sell its American onshore wind energy business, valued at approximately $2 billion, signaling a strategic retreat from its earlier ambitions in green energy. The sale of BP Wind Energy, which operates 10 wind farms across seven U.S. states, will enable the company to refocus its efforts on solar energy.

William Lin, BP's natural gas and low carbon chief, stated that the wind energy business would likely be of greater value to another owner. Despite the sale, Lin reaffirmed that renewables remain integral to BP's long-term strategy as it transitions to an integrated energy company.

The company plans to streamline its renewable energy portfolio by concentrating resources on Lightsource BP, a subsidiary specializing in solar power. The shift follows a broader company-wide movement away from green energy under new CEO Murray Auchincloss, who has prioritized investments in oil and gas, particularly in the Gulf of Mexico and U.S. shale regions.

BP's decision comes in the wake of shareholder dissatisfaction with its green energy ventures, which have not yielded expected returns. Shares of BP have dropped by over 20% in the past year, exacerbating the pressure for a strategic pivot.

Source: finance.yahoo.com