BP announced a plan to sell their US Wind energy business as a part of efforts to refocus on oil and gas operations.
A BP spokesman said, “For BP, this effort represents another example of prudent and active management of our global portfolio. It is part of a continuing effort to become a more focused oil and gas company and re-position the company for sustainable growth.”
Wind power is BP’s largest renewable energy businesses and they have built one of the largest wind businesses in the U.S. with full or part ownership of 16 wind farms in nine states. Over the last six years, assets are reportedly worth about $1.5 billion.
While BP didn’t report the value themselves, they did say in a statement they expect “attractive offers” for the assets.
BP has invested more than $55 billion in U.S. energy development the last five years, according to the company.
In total, BP’s wind energy investments are capable of generating a combined 2,600 megawatts of power. The company also is involved in 2,000 megawatts of wind power projects in development in which they call “shovel ready.”
In BP’s 2012 annual report, they reported that their wind business has created more than 200 jobs.
They’ve already abandoned other initiatives in renewable and low-carbon energy. In December 2011, BP withdrew from solar power.
With this wind energy sale, it would leave BP’s renewable energy business limited to biofuels research and ethanol refining in Brazil. Former CEO John Browne had pushed the effort to move BP “beyond petroleum” which started in 1997, Bloomberg reported. The company became the first major oil company to encourage precautionary measures to combat global warming.
“BP’s move will make some people nervous but I’m sure others will be thrilled to see a competitor exit,” Amy Grace, a New York-based analyst at New Energy Finance, told Bloomberg by e-mail. “There’s too much development competition within the U.S.”
BP Energy Outlook 2030: America’s Energy Future
The BP Energy Outlook 2030 shares our 2013 projections for the world’s energy future. By 2030, BP projects that 99% of America’s energy will be supplied domestically.
How? The US is projected to become one of the world’s top producers of renewable energy, as well as the global leader in oil and natural gas production. America will play a major role in the shale gas and tight oil revolution, which will make up over half of global production by 2030.
Wind Farms Increase Local Temperature by 1.37F
Wind Tower Tariffs Disappoint China, Makes US Wind Energy Manufacturers Celebrate
Global Wind Day 2012 Brings Celebration, Controversy & Contests For Wind Power