bp Provides 9 GW of Renewables to Portfolio with 7X Vitality Buy
bp, a UK-based multinational oil and gas company, has entered into an agreement to purchase 9 GW of US solar development projects from 7X Energy, an independent solar developer.
The acquisition represents a significant step towards bp’s goal of increasing its net renewable energy capacity to 20 GW by 2025 and 50 GW by 2030. The transaction will also expand bp’s renewable energy pipeline from 14 GW to 23 GW. The assets are being developed by Lightsource bp, a European solar developer.
“With this purchase, we are continuing to implement our strategy while deliberately and disciplinedly expanding our renewable energy business,” says Dev Sanyal, Executive Vice President of Gas and Low Carbon Energy at bp. “It brings us 9 GW of high-quality solar projects in markets in which we can create integrated offers for renewable energies through our trade and customer franchises. We will bring together the expertise of Lightsource bp with the breadth of integration capabilities of bp to develop this project portfolio. This is a significant step as we continue to meet our net zero ambitions. “
bp will pay 7X Energy $ 220 million for the projects and 1 GW of Safe Harbor equipment and expects the acquisition to be completed within 30 days. The projects are expected to meet bp’s low carbon investment criteria and generate returns of at least 8-10%.
The projects are spread across 12 US states, with the largest portfolios in Texas (ERCOT) and the Midwest (PJM). Plants with a combined generation capacity of 2.2 GW are expected to make the Final Investment Decision (FID) by 2025, while the remainder will advance by 2030. The development is intended to support thousands of jobs through the construction.
Solar power is the fastest growing source of energy in the US and is projected to quadruple in the next 10 years. It currently accounts for more than 40% of all newly added power generation capacity in the United States