BP has agreed to sell its US onshore wind business as the energy giant continues to refocus efforts on fossil fuels at the expense of renewables.
The group, which ramped-up oil and gas production over the second quarter, told investors today its BP Wind Energy business, comprising 10 operating wind assets, would be bought by US firm LS Power for an undisclosed amount.
The business’ workforce is expected to transfer to the new owner on completion of the deal.
BP has shelved its once industry-leading targets for reducing carbon emissions and slashed clean energy investment as it comes under pressure from investors to boost its share price.
The group is seeking to cut cleaner energy investment by more than $5billion annually and offload assets worth a total of $20billion by 2027.
The shake-up led to the departure of its green energy chief Giulia Chierchia last month.
BP is refocusing its efforts on fossil fuels at the expense of renewables
William Lin, bp EVP for gas & low carbon energy, said on Friday: ‘We have been clear that while low carbon energy has a role to play in a simpler, more focused bp, we will continue to rationalize and optimize our portfolio to generate value.
‘The onshore US wind business has great assets and fantastic people, but we have concluded we are no longer the best owners to take it forward.’
BP shares were up 1.5 per cent to 403.2p in early trading, bringing losses over the last 12 months to just under 11 per cent.
DIY INVESTING PLATFORMS
AJ Bell
AJ Bell
Easy investing and ready-made portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free fund dealing and investment ideas
interactive investor
interactive investor
Flat-fee investing from £4.99 per month
InvestEngine
InvestEngine
Account and trading fee-free ETF investing
Trading 212
Trading 212
Free share dealing and no account fee
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.
This article was originally published by a www.dailymail.co.uk . Read the Original article here. .