British oil and gas company BP is pivoting back to fossil fuels and divesting its onshore wind energy business in the U.S. after its efforts to go green seemingly fell short. According to the fossil fuel multinational, it has entered a deal to sell its share of the 10 onshore wind farms it owns in the U.S. to LS Power, a utility-scale electric transmission operator based in New York. The farms collectively generate enough clean wind energy to power over half a million American homes.
Although the financial details of the deal between BP and LS Power haven’t been disclosed, the wind farms are believed to be worth less than the $2 billion valuation previously placed on BP’s onshore wind operations. BP operates nine of the ten wind farms in question. The British firm plans to offload around $20 billion in onshore wind assets to “simplify” its operations and refocus on its core business, fossil fuels. BP, a company historically centered around oil and gas, tried to reinvent itself as a net-zero energy firm but struggled to maintain its share price throughout the transition.
According to BP, it is no longer the “best owner” to advance the wind energy business. News of the deal came shortly after BP executive Giulia Chierchia stepped down from her role leading the company’s sustainability strategy to reportedly pursue other opportunities. With the company shifting its focus back to fossil fuels, BP has chosen not to refill Chierchia’s position. The decision marks a significant strategic retreat from its prior renewable energy ambitions, which had previously contributed to a major collapse in share value.
The Trump administration’s policy reversals have also added uncertainty to the renewable energy landscape. In addition to rolling back most of the Biden-era green initiatives, the administration has scrapped several subsidies and incentives aimed at increasing the adoption of renewable energy and clean infrastructure, such as electric vehicles. This shift in political climate has made green energy investments riskier, especially in the United States. A BP executive overseeing gas and low-carbon projects said that while the firm still intends to integrate renewables into its portfolio, it will streamline operations to maximize returns.
BP’s latest move underscores the harsh economic and political realities facing legacy energy firms attempting to go green. With share prices to protect and investor pressure mounting, the company is falling back on what it knows best, oil and gas, while treating renewable energy as more of a side bet than a primary strategy. Whether this approach will pay off in the long run remains to be seen, especially as climate concerns and global energy markets continue to evolve.
The shifting policy direction in the U.S. has also put other players in the clean energy field like Mullen Automotive Inc. (NASDAQ: MULN) in a more challenging position in their bid to lure more motorists to switch to climate-friendly EVs.
NOTE TO INVESTORS: The latest news and updates relating to Mullen Automotive Inc. (NASDAQ: MULN) are available in the company’s newsroom at https://ibn.fm/MULN
About GreenEnergyStocks
GreenEnergyStocks (“GES”) is a specialized communications platform with a focus on companies working to shape the future of the green economy. GreenEnergyStocks is one of 70+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, GES is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists, and the general public. By cutting through the overload of information in today’s market, GES brings its clients unparalleled recognition and brand awareness. GES is where breaking news, insightful content and actionable information converge.
To receive SMS alerts from GreenEnergyStocks, text “Green” to 888-902-4192 (U.S. Mobile Phones Only)
For more information, please visit https://www.GreenEnergyStocks.com
Please see full terms of use and disclaimers on the GreenEnergyStocks website applicable to all content provided by GES, wherever published or re-published: https://www.greennrgstocks.com/Disclaimer
GreenEnergyStocks
Los Angeles, CA
www.GreenEnergyStocks.com
310.299.1717 Office
[email protected]
GreenEnergyStocks is powered by IBN