BP slashes renewables investment, seeks new Lightsource BP partner

Oil and gas giant BP wants to sell stake in Lightsource BP just four months after completing full takeover of the renewables developer. New “strategy reset” will also cut company’s investment in energy transition by $5 billion per year.

BP is slashing its investment in energy transition activities and seeking a new partner for Lightsource BP, the renewables developer fully owned by the oil and gas giant.

The change in strategy comes just months after the multinational completed a full takeover of the Lightsource BP business. BP acquired 50.03% of Lightsource BP in a deal completed in October 2024, for a reported GBP 400 million ($505 million).

Founded in 2010 as Lightsource Renewables Energy, Lightsource BP builds, operates and partners on solar projects in Europe, the Middle East and Africa, Americas and Asia Pacific regions. BP first invested in the business in 2017 when it acquired a 42% stake in the company.

BP now aims to divest $20bn from its business by 2027, including potential proceeds from selling a stake in Lightsource BP and a strategic review of lubricant business Castrol.

In a press release outlining plans to “fundamentally reset” BP’s business strategy, BP chief executive Murray Auchincloss said the company will be “very selective in our investment in the transition, including through innovative capital-light platforms.”

Plans include cutting investment in energy transition activities by more than $5 billion per year. The remaining $1.5-2bn per year earmarked for energy transition investment will focus on biogas, biofuels and EV charging, “capital-light” partnerships in renewables, hydrogen and carbon capture and storage. BP expects capital expenditure on low-carbon energy to be less than $800 million per year. Reallocation plans for capital expenditure include increasing investment in oil and gas to around $10bn per year.