BP announced its decision to divest from its U.S.-based onshore wind turbine operations. The move signals a shift in strategy, with the company refocusing on its core business of oil and gas production, a pivot that comes amid changes in leadership and investor dissatisfaction with its previous emphasis on renewable energy.
Under BP’s new CEO Murray Auchincloss, the company is putting more emphasis on oil and gas operations in response to pressure from investors who have expressed concerns about the financial returns of its renewable energy ventures.
BP shares dropped around 23% from the company’s 12-month high in October 2023. In line with this revised approach, BP already paused the development of new wind power projects and prioritized investing in and even acquiring new oil and gas assets.
Currently, BP operates wind energy assets in seven U.S. states. Those projects generate approximately 1.7 gigawatts of electricity, which is enough to power over half a million homes. The company’s portfolio in this sector is valued at around $2 billion.
“BP Wind Energy’s assets are high-quality and grid-connected but are not aligned with our plans for growth,” William Lin, BP executive vice president for gas & low carbon energy, said. “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.”
In a statement announcing the divestment from American onshore wind energy, BP said that it will integrate future renewable energy with its solar energy branch. The British oil and gas giant emphasized that clean energy remains an “important part” of its long-term strategy, but that through this move it aims to streamline operations and become a “higher value company.”