bp is seeking to sell a 50% stake in its solar unit, Lightsource bp, to a strategic partner, aiming for cash and future investment commitments.
The move is part of bp’s broader strategy to address investor concerns, reduce costs and boost returns on investments, as reported by Reuters.
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bp has faced pressure from investors such as Elliott Management, which holds a 5% stake in the company, due to its underperformance compared to peers such as Shell and Exxon Mobil.
The initiative, named Project Scala, seeks partnerships with experienced leaders in the renewables sector, according to a sales document.
The company announced its intention to find a strategic partner for a 50% stake in the solar company in 2025, involving a cash deal and a commitment to further investment in the future.
It aims for joint control over the assets, with the non-binding offers due in June and shortlisted bidders expected in July.
bp declined to comment further on the sales document but confirmed its intent to bring in a partner for Lightsource bp.
bp acquired full ownership of Lightsource bp in October 2024, purchasing the remaining 50.03% stake for £400m ($517.80m) and assuming £2.1bn in debt. The two entities first partnered in 2017.
Lightsource bp currently has 5.7GW of operational assets across 19 markets, with more than 2GW of assets constructed in 2024.
The platform is expanding into battery storage and onshore wind, aiming to deliver between 3GW and 5GW annually.
In a strategic shift, bp recently announced plans to reduce renewable energy investments and increase annual oil and gas investments to $10bn.
The company is also reviewing the sale of its Castrol lubricants business with a $20bn targeted divestment by 2027.
