bp has reached an agreement to purchase 9 GW of solar development projects in the US from independent US solar developer 7X Energy. 

The acquisition represents a significant step towards bp’s target of growing its net developed renewable generating capacity to 20 GW by 2025 and 50 GW by 2030. 

The deal will also grow bp’s renewables pipeline from 14 GW to 23 GW. The assets will be developed through bp’s 50-50 solar joint venture Lightsource bp, a global leader in solar energy, applying Lightsource bp’s capabilities to accelerate bp’s renewables targets. 

"With this purchase, we are continuing to put our strategy in action as we grow our renewables business in a deliberate and disciplined way. It brings us 9 GW of high-quality solar projects in markets where we can create integrated renewable energy offers through our trading and customer franchises," Dev Sanyal, bp Executive VicePresident of Gas and Low Carbon Energy. 

bp will pay 7X Energy $220 million for the project and 1GW of “safe harbour” equipment and expects the acquisition to complete in 30 days. The projects are expected to meet bp’s disciplined low carbon investment criteria, generating returns of at least 8-10%.

 Dev Sanyal said, “With this purchase, we are continuing to put our strategy in action as we grow our renewables business in a deliberate and disciplined way. It brings us 9 GW of high-quality solar projects in markets where we can create integrated renewable energy offers through our trading and customer franchises." 

Dave Lawler, bp America Chairman and President said, “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.” 

The projects are spread across 12 US states, with the largest portfolios in Texas (ERCOT) and the Midwest (PJM). Assets with a combined generating capacity of 2.2 GW are expected to reach final investment decision (FID) by 2025, with the remaining progressing by 2030. Once developed, these projects will have the capacity to generate enough clean energy to power around 1.7 million US homes. The development is also expected to support thousands of jobs through construction. 

Nick Boyle, Group Chief Executive Officer of Lightsource bp said, “This transaction speaks volumes about the success of our JV with bp, and how we leverage each other’s strengths to realize our ambitions for solar and a low-carbon future. It also positions Lightsource bp as a growing force in the US solar market, as we expand our portfolio across the United States."