Energy giant BP is set to acquire the remaining stake in the solar developer and operator, Lightsource BP. The oil and gas giant will take ownership of the remaining 50.03% interest in Lightsource BP.
Lightsource BP has multiple solar farm projects in the planning system in Ireland and has been operating with a capital-light business model, focusing on the development, engineering, construction, and strategic divestment of renewable energy assets.
This approach has allowed them to generate value by selling majority interests in the projects they have developed to strategic partners.
By acquiring complete ownership of Lightsource BP, BP aims to leverage its strengths, particularly in finance and trading, to further expand the reach of Lightsource BP. BP will continue to target double-digit equity returns from this venture.
BP will use Lightsource BP's world-class expertise as a developer of cost-competitive utility-scale onshore renewable power to fulfill its own demand for low-carbon energy.
This integration is expected to support and reduce the risks associated with BP's transition growth initiatives in hydrogen, EV charging, biofuels, and power trading.
The completion of this transaction is contingent upon obtaining regulatory approvals, and is currently anticipated to conclude in mid-2024.
Anja-Isabel Dotzenrath, BP's Executive Vice President for Gas and Low-Carbon Energy said; "This represents a natural progression of the partnership we've cultivated over the past six years. Now, we have the opportunity to propel Lightsource BP to the next level of profitable growth and performance."