BP renewable energy acquisition with 7X Energy
BP has reached an agreement with 7X Energy, to purchase 9GW of solar development projects in the US.
The acquisition by the oil giant is a significant step towards BP’s 2025 target, of net developed renewable generating capacity at 20GW. By 2030, BP is aiming for 50GW.
BP and 7X Energy team up for renewable energy targets
BP is the USA’s largest energy investor, investing over $125bn in the economy and supporting more than 125,000 jobs.
7X Energy is a utility-scale solar independent power producer which owns, develops, and provides engineering, construction, and procurement management and asset management services, for utility-scale solar projects.
The deal will grow BP’s renewables pipeline from 14GW to 23GW. The assets will be developed through BP’s 50-50 solar joint venture Lightsource BP, a global leader in solar energy.
Dev Sanyal, BP executive vice president of gas and low carbon energy BP will pay 7X Energy $220 million for the projects and 1GW of “safe harbour” equipment and expects the acquisition to complete in 30 days.
The projects are expected to meet BP’s disciplined low carbon investment criteria, generating returns of at least 8-10%.
Integrated renewable energy
“With this purchase, we are continuing to put our strategy in action as we grow our renewables business in a deliberate and disciplined way”, said Sanyal, BP executive vice president of gas and low carbon energy. “It brings us 9GW of high-quality solar projects in markets where we can create integrated renewable energy offers through our trading and customer franchises.”
“This transaction speaks volumes about the success of our JV with BP, and how we leverage each other’s strengths to realize our ambitions for solar and a low-carbon future”, Nick Boyle, group chief executive officer of Lightsource BP. “It also positions Lightsource BP as a growing force in the US solar market, as we expand our portfolio across the United States.
