BP Sells US Wind Farms as It Focuses Back on Oil

BP has decided to sell its US onshore wind farms to LS Power. This marks a big change in BP’s plans. The company is moving away from wind power and back to oil and gas. This move is part of BP’s aim to raise $20 billion by 2027 through selling off parts of its business. It started this plan in February 2025. So far, BP has sold assets worth $1.5 billion this year. It wants to raise $3–4 billion in 2025 alone.

What Was Sold?

The deal includes 10 operating wind farms in seven US states. Here’s a table with key details:

The total output is 1.7 GW gross and 1.3 GW net to BP.

Terms of the Deal

BP did not disclose how much the wind farms sold for. Earlier estimates placed their value at around $2 billion. But recent market data suggests the actual price is likely lower.

The sale came after a 10-month competitive auction. That means multiple buyers looked at the farms before LS Power won the deal. BP expects the sale to finish by the end of 2025, after it gets approval from regulators.

Why BP Made This Move

CEO Murray Auchincloss is focusing BP on oil and gas. He feels wind farms did not fit BP’s long-term goals. The company now wants to invest where it sees better returns.

BP’s low-carbon investments will now be more “capital-light.” That means BP will spend less money on renewables. It will still work on select offshore wind and new projects like hydrogen and carbon capture. BP’s former strategy to grow clean energy not only failed to deliver strong profits, but shares also lagged behind other oil companies. This made investors unhappy.

Market Reaction and Shareholder Pressure

BP’s stock fell over 10% in the past year. This sparked talk that it might become a takeover target. The hedge fund Elliott Management bought a big stake in BP. It is pushing for changes like this sale. After news of the deal, BP shares rose about 1.9%. Meanwhile, Shell denied rumors it planned to buy BP. Shell’s value has also dropped nearly one-third in the past year.

What LS Power Gains

LS Power will add these 10 wind farms to its renewable arm, Clearlight Energy. After the deal, Clearlight will run about 4.3 GW of wind and solar power. LS Power already runs a 21 GW portfolio that includes renewables, storage, gas, and fuel assets, plus over 780 miles of power lines. Paul Segal, LS Power’s CEO, said these wind farms fit Clearlight’s mission to build clean and reliable power systems. They also come with strong contracts and good locations.

BP’s Future Plans

After this sale, BP will continue to sell more assets. It is also thinking about selling its lubricants unit, Castrol, which may bring in $8 billion. BP also sold petrol stations in the Netherlands and is preparing to provide more updates in early August during its Q2 earnings call. BP is also searching for a new company chair to replace Helge Lund.

Key Takeaways

• 10 wind farms sold: across seven states, totaling 1.7 GW gross, 1.3 GW net to BP.
• Sale price: likely under $2 billion; terms not made public.
• BP’s strategy: refocus on oil and gas and cut renewable spending.
• Investor pressure: led by Elliott Management, also reflected in falling share prices.
• LS Power gains: increases Clearlight to ~4.3 GW and adds expertise and scale.
• Next steps for BP: more asset sales, a possible Castrol sale, and a Q2 update in August.

Conclusion

BP’s sale of US wind farms shows a bold and clear strategic shift. The company is choosing fossil fuels over large-scale renewables. It aims to improve profits and keep investors happy. LS Power, on the other hand, sees the deal as a chance to grow its clean energy business fast. For BP, this deal is one step in a long plan to reshape the company.

Summary Table