BP (LON: BP) has completed its acquisition of utility-scale solar and battery storage developer Lightsource BP.
The supermajor announced plans to purchase the remaining 50.03% interest in the company in November 2023.
With the transaction now complete, Lightsource BP expands BP’s presence globally in the onshore renewable energy industry, with a 62GW development pipeline and operations spanning 19 global markets.
While BP will take on full ownership, Lightsource BP will retain its standalone operating model and independent brand, delivering renewable and affordable energy to businesses and communities across the world.
BPwill look to unlock further value by bringing a strategic partner into the business in due course.
BP executive vice-president for gas and low carbon energy William Lin said: “This deal creates an engine for onshore renewable power development at BP – combining wind, solar and batteries to generate the energy flows our traders need to optimise value and the electrons our customers want. It also helps us with our own power demand.
“Ultimately, this capital-light model will help create significant value for BP’s wider operations. We now look forward to welcoming the team into our global business, helping Lightsource BP continue to build on its market-leading position.”
BP bought into Lightsource BP in 2017. The group operates with a develop, engineer, construct and farm-down business model that creates value through selling majority interests in assets it has developed to strategic partners.
The acquisition will also help BP meet its own demand for cost competitive, low carbon power, including for power trading, EV charging, biofuels and green hydrogen.
Lightsource BP group chief executive Joaquin Oliveira added: “I’m excited to begin the next chapter, taking Lightsource BP to a new level of profitability, growth and performance. We will continue to scale this successful business, and also apply its capabilities to support BP’s low carbon energy business.”
BP has rolled back some of its renewable energy ambitions, reportedly imposing a hiring freeze and pausing new offshore wind projects amid investor discontent over its low carbon strategy.
This comes as BP CEO Murray Auchincloss plans to refocus the company on oil and gas investments over pressure from shareholders to raise the company’s profitability and narrow the valuation gap with more oil-focused US rivals.
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