bp purchases 9-GW PV solar development pipeline from 7X Energy
British Petroleum (bp) has reached an agreement to purchase 9 GW of US solar energy development projects from an independent developer 7X energy. The acquisition is a step towards bp’s goal of increasing its net developed renewable energy generation capacity to 20 GW by 2025, with the goal of increasing it to 50 GW by 2030.
The agreement will grow bp’s renewable energy pipeline from 14 GW to 23 GW. The assets will be developed through bp’s 50-50 solar joint venture Light source bp, by applying the subsidiary’s capabilities to accelerate BP’s renewable energy targets.
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, with a return of at least 8-10%.
“With this purchase, we are putting our strategy into practice as we grow our renewable energy business in a deliberate and disciplined manner,” said Dev Sanyal, Executive VP Gas and Low Carbon Energy at BP. “It provides us with 9 GW of high performance solar energy projects in markets where we can create integrated renewable energy offerings through our trading and customer franchises.
“We will bring together Lightsource bp’s industry-leading expertise with bp’s extensive integration capabilities in the US to develop this portfolio of projects,” Sanya continued. “This is an important step as we continue to deliver on our net zero ambition.”
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 the final investment decision in 2025 and the remaining progress by 2030. Once developed, these projects will be able to generate enough clean energy to power approximately 1.7 million US homes. to provide. The development is also expected to support thousands of jobs through construction.
“Bp’s new high-performance solar portfolio will provide low-carbon energy, create US jobs and deliver the competitive returns our shareholders expect,” said Dave Lawler, BP America chairman and president. “In line with our strategy, we aim to integrate these projects with our existing onshore and offshore wind, natural gas and trading and shipping companies to provide customers with what they want: reliable, affordable and clean energy.”
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