BP buys 9-GW solar project pipeline in US

UK-based oil and gas group BP Plc (LON:BP) said on Tuesday it has agreed to acquire a 9-GW solar project pipeline in the US from developer 7X Energy Inc.

The assets, to be owned by BP, will be developed by its 50:50 solar joint venture Lightsource bp.

BP will buy the project portfolio together with 1 GW of “safe harbour” equipment for USD 220 million (USD 180m). It expects the purchase to be completed in 30 days.

The projects are located in 12 US states, with the greatest concentrations in Texas and the Midwest. Schemes totalling 2.2 GW are expected to reach a final investment decision by 2025, with the balance progressing by 2030, according to the announcement.

BP said it is growing its renewables business in a disciplined manner as the projects are expected to meet its 8-10% returns threshold. The acquisition supports the company’s goal of reaching net developed renewable generating capacity of 20 GW by 2025, while boosting its renewables pipeline to 23 GW from 14 GW.

BP executive vice president of gas and low carbon energy Dev Sanyal said the company adds 9 GW of solar projects in markets where it can create integrated renewable energy offers through its trading and customer franchises.

“In line with our strategy, we’ll aim to integrate these projects with our existing onshore and offshore wind, natural gas, and trading and shipping businesses to give customers what they want — reliable, affordable and clean energy,” added BP America chairman and president Dave Lawler.

(USD 1.0 = EUR 0.819)

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