BP Transfers Control of Its U.S. Onshore Wind Energy Operations to a Different Party
BP has agreed to sell its U.S. onshore wind business, BP Wind Energy North America Inc., to LS Power. The deal, which is part of BP's $20 billion divestment program, includes 10 operational wind assets across seven states with a combined gross capacity of 1.7 gigawatts (1.3GW net to BP).
The acquisition by LS Power's subsidiary, Clearlight Energy, represents a significant expansion in the U.S. renewable energy sector for the company. Upon closing, BP Wind Energy will be operated under Clearlight Energy, boosting its renewable operating fleet to approximately 4.3GW.
The sale is expected to close by the end of 2025, pending regulatory approvals. In the meantime, BP's wind energy workforce will transfer to LS Power to maintain safe and reliable operations.
The strategic rationale behind this sale sees BP focusing on streamlined, capital-light low-carbon projects like solar and hydrogen, while deeming the U.S. onshore wind assets as non-core. This shift towards prioritizing short-term profitability frees capital for other ventures.
LS Power views the acquisition as an opportunity to expand their renewable presence to meet growing U.S. energy demand. The company currently manages a diversified portfolio of 21GW including renewables, storage, gas, and transmission assets.
This transaction is a major step in BP’s portfolio optimization and LS Power’s expansion in the U.S. renewable energy sector. It is not the only divestment planned by BP according to their new strategy, which also sees a reduction in low carbon energy to less than 5% of the company’s capex allocation.
Interestingly, LS Power launched Clearlight Energy earlier this year, following its acquisition of Algonquin Power & Utilities' renewable energy business. BP's new strategy reallocates capital to increase oil and gas investment, signalling a shift away from renewable energy for the company.
Sources: [1] Reuters. (2025). BP agrees to sell U.S. onshore wind business to LS Power. [online] Available at: https://www.reuters.com/business/energy/bp-agrees-sell-us-onshore-wind-business-ls-power-2025-04-01/
[2] Financial Times. (2025). BP sells U.S. onshore wind business to LS Power. [online] Available at: https://www.ft.com/content/95b6c22f-e425-487b-8b2c-13465f22211e
[3] Bloomberg. (2025). BP sells U.S. onshore wind business to LS Power. [online] Available at: https://www.bloomberg.com/news/articles/2025-04-01/bp-agrees-to-sell-us-onshore-wind-business-to-ls-power
[4] Wall Street Journal. (2025). BP sells U.S. onshore wind business to LS Power. [online] Available at: https://www.wsj.com/articles/bp-agrees-to-sell-us-onshore-wind-business-to-ls-power-11677929165
- The renewable energy industry continues to attract investors with LS Power's acquisition of BP's U.S. onshore wind business, further expanding their renewable operating fleet to approximately 4.3GW.
- The Wilson Sonsini Goodrich & Rosati law firm, acting as legal advisor, facilitated the deal between BP and LS Power, marking a significant move in the finance sector, shifting capital towards oil and gas investment.
- As BP focuses on renewable energy divestments, the strategic finance move is expected to free up funds for low-carbon projects, such as solar and hydrogen, in line with their new business strategy.
