BP Intends to Sell Half of Lightsource BP, Bids Due in June

Core Insights - BP plc is seeking to sell a 50% stake in its solar unit, Lightsource BP, to cut costs and improve returns while addressing investor concerns [1][7] - The initiative, named Project Scala, aims to find a strategic partner with expertise in renewable energy [2][3] - BP's recent strategy shift under CEO Murray Auchincloss emphasizes increasing returns from its renewable business while balancing financial discipline [3][5] Company Strategy - BP took full control of Lightsource BP for £400 million plus £2.1 billion in debt last October and is now looking to partially divest [2] - The company plans to cut renewable energy investments while increasing annual oil and gas spending to $10 billion [5] - BP is targeting$20 billion in divestments by 2027 and is reviewing its lubricants business, Castrol [5] Market Position and Expansion - Lightsource BP currently operates 5.7 gigawatts of assets across 19 markets, with over 2 GW of new projects completed in 2024 [3] - BP's sales document outlines an ambitious expansion strategy for Lightsource BP, targeting 3 to 5 GW of annual capacity additions [6] - A new investor could provide access to specific markets, such as India, where solar demand is surging [6] Investor Pressure - BP is under pressure from investors, particularly activist fund Elliott Management, which has built a 5% stake in the company [4] - Elliott Management has urged BP to scale back its green energy investments and focus on more profitable ventures, including oil and gas [4]