There are signs that the era of eco-activists diverting American tax dollars to green energy schemes is ending.
Last month, the Biden administration appeared to be offering a “going out of business soon” giveaway of $4.3 billion to various “climate” projects.
Now, energy giant BP has announced plans to sell its U.S. onshore wind energy business, saying its assets do not align with its growth plans.
BP said it will launch the sale process shortly for the wind assets, bp Wind Energy, which has interests in 10 operating onshore wind energy assets across seven U.S. states.”We believe the business is likely to be of greater value for another owner,” William Lin, BP’s executive vice president for gas and low carbon energy said in a statement.Several offshore wind companies have cancelled or sought to renegotiate power contracts for planned U.S. projects in the past year, citing soaring materials costs, high interest rates, and supply chain disruptions.bp Wind Energy’s assets, which have net total generating capacity of 1.3 gigawatts, are not aligned with BP’s plans for growth in Lightsource bp, the London-listed company said.
BP recently came under new management that focused on an energy source that worked at a civilization-worthy level.
The move marks a turning point under BP’s new CEO Murray Auchincloss, who is focusing on oil and gas in response to investor pressure and the declining profitability of renewable projects.BP’s decision to pull out of onshore wind reflects a broader trend in the US renewables sector.Many companies, including major players such as Ørsted, have recently cancelled or renegotiated power purchase agreements for offshore wind projects.This situation is exacerbated by rising material costs, high interest rates and supply chain disruptions.William Lin, BP’s executive vice president for gas and low-carbon energy, pointed out that these assets would be more valuable to another owner, justifying the decision to sell.
The company is now planning to participate in a new pipeline in Europe.
Meanwhile, BP also did a $1bn deal with Apollo Global Management for a stake in the Trans Adriatic gas pipeline on Monday. The size of the stake was undisclosed, but BP owned 20 per cent of the pipeline and Apollo said it would not have a controlling share. The pipeline runs from the Greek border with Turkey to Southern Italy and is part of a network that brings gas from Azerbaijan to Europe.
Thus, another green energy domino falls.
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