Gunvor Group has agreed to acquire a 75% ownership stake in Spanish gas power plant Bahía De Bizkaia Electricidad (BBE) from BP.

The 785MW combined cycle power plant is in Bilbao, Spain.

Financial details of the deal have not been disclosed by the companies.

This is Gunvor's first power generation asset investment. It will help the company fulfil its goal of growing the energy sector in Spain.

Gunvor global portfolio head Shahb Richyal stated: “We are truly excited at this landmark acquisition in a new asset class for our company.

“BBE also represents an important step as we continue to expand our presence in gas and power trading. We look forward to welcoming BBE’s team into Gunvor’s growing global family.”

The stake acquisition in BBE builds on Gunvor’s existing investments in two biofuel plants in Huelva and Álava.

The energy trader currently operates a marketing and trading office in Madrid and has a workforce of more than 100 in Spain.

Gunvor intends to retain the current employees and management at BBE.

BP Spain country head Andrés Guevara stated: “This decision reflects bp’s strategy of transforming from an international oil company into an integrated energy company that aims to become net zero by 2050 or sooner.

“We remain committed to this transformation in Spain, a key market for the bp group, as we re-orient our investments towards transition growth engines such as EV [electric vehicle] charging, bioenergy, renewable power and hydrogen.”

The deal is expected to close in the first quarter of 2024.

In December 2023, bp agreed to acquire the remaining 50.03% stake in solar energy joint venture Lightsource bp for £254m ($319.35m).