BP plans to sell its onshore wind business in the US in a further sign that the oil major is rowing back on its commitment to transition towards developing more renewable energy projects.
The firm said on Monday that it would launch a sale process BP Wind Energy, its American onshore wind energy division that operates ten onshore wind farms across seven states in the US.
It said it now intends to focus on Lightsource BP, its solar power business, which it took sole ownership of in November 2023.
It confirmed it will launch the sale process shortly.
William Lin, executive vice president for gas and low carbon energy, said: “BP Wind Energy’s assets are… not aligned with our plans for growth in Lightsource BP, so we believe the business is likely to be of greater value for another owner.
“This planned divestment is part of our strategy of continuing to simplify our portfolio and focus on value.”
The decision comes as BP has taken steps to slow its transition away from fossil fuels under new CEO Murray Auchincloss.
In February 2023, the energy giant reduced its cornerstone pledge to reduce its oil and gas output between 2019 and 2030 from 40 per cent to 25 per cent.
And in June of this year, Auchincloss put a pause on all new offshore wind projects, moving staff responsible for identifying future opportunities onto projects that were already underway.
It is also the latest example of the more onerous financial landscape in which the wind sector has been operating in the last few years.
Higher interest rates, surging raw material costs and supply chain disruption have all eaten into the profitability of wind projects.
The ballooning costs led to energy firms not placing a single bid in a 2023 offshore wind auction run by the UK government despite the maximum price having been set the same as a successful round in 2022.