BP is exploring the sale of a minority stake in its offshore wind division to offset the substantial development costs associated with its projects, as reported by Reuters. This move follows shareholder pressure over BP’s 2020 energy transition strategy, as profits from renewables have fallen while oil and gas margins have risen.
The company has engaged Bank of America to identify potential partners as it seeks to reduce its financial burden in the growing offshore wind sector while maintaining its commitment to key renewable energy initiatives. BP’s portfolio also includes investments in solar, biofuels, and low-carbon hydrogen technologies.
BP CEO Murray Auchincloss, who took office in January 2024, has expressed plans to restructure the company’s strategy by focusing on high-margin ventures. Auchincloss also plans to sell a share of BP’s solar joint venture, Lightsource BP, following its full acquisition. In addition, BP is considering divesting its US onshore wind division, BP Wind Energy, as these assets do not align with its strategic growth objectives.
The decision comes amid challenges faced by offshore wind companies in the US, including the renegotiation or cancellation of power contracts due to rising costs, interest rates, and supply chain issues. Although BP does not yet operate any offshore wind farms, it has interests in projects in Britain, Germany, Asia, and the US.
In 2023, BP acquired rights to develop two wind farms in Germany with a total capacity of 4 GW, committing to a €6.7 billion ($7.3 billion) investment over twenty years. Additionally, in partnership with EnBW, BP is developing three wind farms in British waters with a combined capacity of 5.9 GW.