BP seeks to sell 50% of solar unit to strategic partner, bids due in June

BP is seeking to sell 50 per cent of its solar unit Lightsource bp to a strategic partner for cash and a commitment of future investments, with bids due in June, the energy major said in a sales document seen by Reuters. 

London-listed BP is planning asset sales and partnerships as part of a broader plan to address investor concerns. The energy group wants to cut costs and improve its return on investments to boost its share price and profit. 

In a document dated March 2025, seen by Reuters, the company said it was seeking a strategic partner for half of the solar company this year, in a cash transaction with a commitment for follow-on investment. 

Called Project Scala, BP is seeking a strategic partnership with "established leaders with extensive experience" in the renewables industry, according to the document. 

Governance of the emerging entity would reflect joint control of the assets, BP said in the document. 

Initial, non-binding offers are due in June and the company will shortlist bidders in July. 

When asked about the sales document, BP said it intended to bring in a partner for Lightsource bp and launch a sales process in the near future but declined to comment further. 

BP took full ownership of Lightsource bp last October, closing a deal which saw it buy the remaining 50.03 per cent stake for a total consideration of 400 million pounds ($517.80 million), with the addition of 2.1 billion pounds in debt. BP and Lightsource first became partners in 2017. 

BP has been under pressure from investors, notably activist Elliott Management, which built a near 5 per cent stake in the company in recent months as it underperformed peers like Shell and Exxon. 

In a major strategy shake-up, BP announced plans last month to cut investments in renewable energy and to increase annual oil and gas spending to $10 billion. 

CEO Murray Auchincloss said in February that BP had been considering bringing in partners to the solar developer to help boost returns from the fast-growing business. 

The company said in its sales pitch that the Lightsource bp platform had 5.7 gigawatts of operational assets and was active in 19 markets, with more than 2 GW of assets constructed in 2024. It said Lightsource bp was expanding into battery storage and onshore wind. 

It said the platform would deliver 3 to 5 GW annually and that alongside a new investor there was an opportunity to consolidate or access specific markets, such as India. 

Lightsource bp might also take on a "prudent" level of debt in the future, according to the document. 

BP also said last month it was reviewing its lubricants business, Castrol, and targeting $20 billion in divestments by 2027. 

Elliott wanted BP to scale down its green energy spending and sell assets such as wind and solar, Reuters reported previously.     

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