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Acquisition of solar developer designed to help meet demand for clean power from other parts of BP’s business, according to oil and gas giant
BP has struck a deal to take full ownership of Lightsource BP, the British solar company it has part-owned since 2017, in a move designed to bolster the oil and gas giants clean energy portfolio.
The acquisition announced yesterday will see BP snap up the remaining 50.03 per cent stake in Lightsource BP that it did not already own for £254m, with the potential to pay more to selling shareholders over time depending on company performance and the sale of assets earmarked for divestment, it said.
BP bought a 43 per cent stake in the solar and battery developer in 2017 for £200m and increased its share to almost 50 per cent in December 2019, at which point the venture formally rebranded to Lightsource BP.
Anja-Isabel Dotzenrath, executive vice president for gas and low-carbon energy at BP, said the acquisition would "take Lightsource BP to the next level of profitable growth and performance".
"We will continue to scale this successful business, and also apply its capabilities and expertise to help meet BPs growing demand for low carbon power from our transition growth engines," she said. "I look forward to welcoming the Lightsource BP team to BP and am confident that together we can further strengthen its position as a leading global renewables developer."
BP said it planned to use Lightsource BPs clean energy projects to meet its own demand for low carbon power and "underpin and de-risk" the growth of its hydrogen, biofuels, EV charging and power trading businesses, it said.
It said it would "continue to target double digit equity returns from this business" and added that in time it "may also look to unlock further value through bringing a strategic partner into the business".
BPs head finances for gas and low carbon energy is set to become co-CEO of Lightsource BP in early 2024, alongside the solar developers founder Nick Boyle.
The acquisition comes as oil and gas majors face growing pressure to diversify into clean energy and drive forward the net zero transition. |
