BP to Sell US Onshore Wind Business to LS Power in Strategic Shift Toward Portfolio Optimization
BP has officially announced a significant step in the reshaping of its low-carbon energy strategy, revealing an agreement to divest its US onshore wind energy business, BP Wind Energy North America Inc. (commonly referred to as bp Wind Energy), to LS Power. LS Power is a well-established development, investment, and operating company dedicated to the transformation of power and energy infrastructure across North America. The transaction, once finalized, will integrate bp Wind Energy into LS Power’s Clearlight Energy platform, expanding the firm’s renewable energy footprint and increasing its operational capacity to approximately 4.3 gigawatts (GW).
This move marks a pivotal moment for BP as it continues to refine its global energy portfolio, ensuring its investments align with its core focus areas and long-term shareholder value. The decision to sell follows a thorough strategic review and represents part of BP’s broader $20 billion divestment plan, intended to streamline operations, reduce complexity, and focus capital on its most strategic energy investments.
Details of the Transaction
BP Wind Energy, a long-standing component of BP’s US renewables presence, comprises interests in 10 utility-scale onshore wind farms located across seven states in the United States. Of these 10 assets, bp operates nine directly. Together, they generate a gross combined capacity of 1.7GW, with net capacity (attributable to bp) of approximately 1.3GW. These projects are already delivering clean electricity to more than 15 contracted offtakers, ranging from utilities and cooperatives to large corporate buyers. All assets are grid-connected and fully operational.
In addition to the physical infrastructure, LS Power will also assume responsibility for the workforce behind the assets. As part of the deal, bp Wind Energy has been presented to the market as a fully integrated business unit, including operations, engineering, and asset management staff. This means that upon closing of the transaction, a transition of skilled personnel is expected to occur smoothly, with the current bp Wind Energy team becoming part of LS Power’s Clearlight Energy portfolio company.
A Strategic Realignment of bp’s Low Carbon Energy Portfolio
The sale reflects a shift in bp’s evolving approach to low carbon energy. While the company remains committed to contributing to the energy transition, its leadership has indicated a desire to rationalize its asset base and prioritize the sectors and technologies in which it sees the strongest strategic and financial returns.
William Lin, executive vice president of gas & low carbon energy at bp, elaborated on this realignment:
“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. I am pleased we have reached a mutually beneficial deal with LS Power and I look forward to working with them to support our people in maintaining safe and reliable operations as we transition ownership.”
This deal is one in a series of recent divestments that underscores bp’s continued drive to focus its efforts on areas where it has the strongest competitive advantage or where the capital deployed generates the most significant returns. In its first quarter 2025 results, bp updated its divestment guidance, signaling expectations for $3–4 billion in total divestments during the calendar year. As of that filing, $1.5 billion had already been signed or completed. The sale of bp Wind Energy contributes toward reaching that target, with further updates expected in its second-quarter earnings announcement.
LS Power Expands Renewable Platform
For LS Power, the acquisition represents a strategic opportunity to further strengthen its already diverse and fast-growing portfolio. The firm currently manages an operating base of 21GW of power generation assets, encompassing a range of technologies including renewables, energy storage, natural gas, and renewable fuels. In addition to its generation assets, LS Power also controls more than 780 miles of high-voltage transmission infrastructure, with another 350+ miles either under construction or in development.
Paul Segal, Chief Executive Officer of LS Power, expressed enthusiasm about the acquisition and the broader strategic fit of the bp Wind Energy assets:
“We are focused on a holistic approach to advancing American energy infrastructure that includes improving existing energy assets while investing in transformative strategies that make energy more efficient, affordable, and available. Well-located with well-structured contracts, these new assets will expand our renewable energy presence and help to meet growing energy demand across the US. We look forward to welcoming the talented teams operating these assets to LS Power and partnering with them to drive value for our stakeholders.”
The integration of bp Wind Energy is expected to complement LS Power’s ambitions to build a flexible, reliable, and modernized grid that supports growing electricity demand and the accelerating shift toward decarbonization in the power sector. It also reinforces the company’s longstanding position as a leader in the independent power sector, capable of executing complex transactions and effectively operating a wide range of energy technologies.
Industry Context and Implications
The transaction comes at a time when the US wind energy sector faces a complex mix of challenges and opportunities. While federal incentives, including production tax credits (PTC), continue to provide critical support, the industry must also navigate permitting bottlenecks, transmission infrastructure constraints, and supply chain volatility. Amid these headwinds, the consolidation of wind portfolios by well-capitalized, specialized firms such as LS Power may improve efficiency, unlock synergies, and enable greater scale in the delivery of clean energy.
For bp, the sale reflects an increasingly refined view of its role in the global energy transition. While the company remains active in offshore wind, solar, hydrogen, bioenergy, and electric vehicle infrastructure, the divestment of its US onshore wind unit indicates a narrowing of its renewable energy activities to areas where it perceives the strongest strategic and operational fit. This is consistent with broader themes emerging in the oil and gas supermajor space, where energy transition investments are increasingly being made with a sharper focus on capital discipline, return on investment, and shareholder alignment.
