BP Becomes Sole Owner of Lightsource BP

BP PLC has completed a transaction to acquire the 50.03 percent stake in solar developer Lightsource BP Renewable Energy Investments Ltd. that it did not already own.

“With the transaction now complete, Lightsource bp expands bp’s presence globally in the onshore renewable energy industry, with a 62GW [gigawatts] development pipeline and operations spanning 19 global markets”, the British energy major said in a statement.

BP has set a goal of building 50 GW of net installed renewables capacity globally by 2030, up from 3.3 GW in 2021. BP’s renewable energy projects in the pipeline at the end of the third quarter was 46.8 GW net, including 20.5 GW from Lightsource BP’s pipeline, according to BP’s quarterly report Tuesday. Most of BP’s renewables pipeline are in the Americas at 17.8 GW, followed by Europe at 15.4 GW.

Before completing the takeover, Lightsource BP transferred 2.4 GW of its operational and under-construction capacity in the United States to a new joint venture between BP and Lightsource BP’s founders and certain management and staff, BP said in the quarterly release on its website.

“The acquisition will also help bp meet its own demand for cost competitive, low carbon power, including for power trading, EV [electric vehicle] charging, biofuels and green hydrogen”, BP said in the earlier statement about the completion of the takeover.

BP acquired the remaining interest in Lighsource BP, formed 2017, from founders, management and staff.

Lightsource BP retains “its standalone operating model and independent brand, delivering renewable and affordable energy to businesses and communities across the world”, BP added. The brand’s model involves “selling majority interests in assets it has developed to strategic partners”, BP said.

BP named Joaquin Oliveira as new chief executive of Lightsource BP. “We will continue to scale this successful business, and also apply its capabilities to support bp’s low carbon energy business”, Oliveira said.

William Lin, BP executive vice president for gas and low carbon energy, said, “This deal creates an engine for onshore renewable power development at bp – combining wind, solar and batteries to generate the energy flows our traders need to optimize value and the electrons our customers want”.

“Ultimately, this capital-light model will help create significant value for bp’s wider operations”, Lin added. BP plans to bring in a partner in Lightsource BP.

The final transaction consideration was GBP 400 million ($519.38 million), “of which approximately £0.2bn [$259.74 million] relates to the pass-through of proceeds from pre-completion asset sales”, BP said. “Following completion, bp has recognized £2.1bn [$2.73 billion] net debt, which is expected to be transitional until a strategic partner is brought alongside”.

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