bp purchases 9-GW PV solar growth pipeline from 7X Power
British Petroleum (bp) has entered into an agreement to purchase 9 GW of US solar development projects from independent developer 7X Energy. The acquisition is a step towards bp’s goal of increasing net renewable generation capacity to 20 GW by 2025, with the aim of increasing this to 50 GW by 2030.
The deal will expand bp’s renewable energy pipeline from 14 GW to 23 GW. The assets will be developed through bp Lightsource bp’s 50-50 solar joint venture, which is leveraging the subsidiary’s capabilities to accelerate bp’s renewable energy goals.
bp will pay 7X Energy $ 220 million for the projects and 1 GW of Safe Harbor equipment and expects the acquisition to be completed in 30 days. The projects are expected to meet bp’s low carbon investment criteria and generate returns of at least 8-10%.
“With this purchase, we continue to execute our strategy as we deliberately and disciplinedly grow our renewable energy business,” said Dev Sanyal, BP’s Executive Vice President of Gas and Low Carbon Energy. “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 industry-leading expertise of Lightsource bp with the breadth of integration capabilities of bp in the USA to develop this project portfolio,” continued Sanya. “This is an important step as we continue to achieve our goal of net zero.”
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 by 2025, while the remainder will advance by 2030. When developed, these projects will have the capacity to generate enough clean energy to power approximately 1.7 million US homes. The development is also intended to support thousands of jobs through the construction.
“Bp’s new high-quality solar portfolio will deliver low-carbon energy, create jobs in the US and deliver the competitive returns our shareholders have come to expect,” said Dave Lawler, Chairman and President of bp America. “In line with our strategy, we aim to integrate these projects with our existing onshore and offshore wind, natural gas, commercial and shipping businesses to give our customers what they want – reliable, affordable and clean energy . “
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