BP (NYSE: BP) revealed that it has reached an agreement to purchase nine gigawatts (GW) of solar development projects in the U.S. from 7X Energy.
BP, which expects the deal to complete in 30 days, said it will pay 7X Energy $220 million for the projects and 1GW of “safe harbor” equipment. The projects are spread across 12 U.S. states, with the largest portfolios in Texas and the Midwest.
Assets with a combined generating capacity of 2.2GW are expected to reach final investment decision by 2025, with the remaining progressing by 2030. The projects, which will be developed through BP’s 50-50 solar joint venture Lightsource BP, are expected to support thousands of jobs through construction.
BP noted that the acquisition represents a significant step towards its target of growing its net developed renewable generating capacity to 20GW by 2025 and its aim to increase this to 50GW by 2030. The deal will grow BP’s renewables pipeline from 14GW to 23GW, the company highlighted.
“With this purchase, we are continuing to put our strategy in action as we grow our renewables business in a deliberate and disciplined way,” Dev Sanyal, BP’s executive vice president of gas and low carbon energy, said in a company statement.
“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,” he added. “We will bring the industry-leading expertise of Lightsource BP together with the breadth of BP’s integration capabilities in the U.S. to develop this portfolio of projects. This is a significant step as we continue to deliver on our net zero ambition,” Sanyal continued.
Dave Lawler, BP America chairman and president, said, “BP’s new high-quality solar portfolio will provide low carbon energy, create U.S. jobs and deliver the competitive returns our shareholders expect”.
“In line with our strategy, we’ll aim to integrate these projects with our existing onshore and offshore wind, natural gas, and trading and shipping businesses to give customers what they want - reliable, affordable and clean energy,” he added.
Solar energy is the fastest growing power source in the U.S. and is expected to quadruple over the next ten years, BP highlights on its website. It currently accounts for more than 40 percent of all new electricity generating capacity added in the U.S., BP’s website shows.
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