BP Plc has announced that it is set to acquire a 9 GW solar project pipeline in the US from developer 7X Energy Inc. The asset will be developed by BP’s joint venture Lightsource bp. BP will buy the project portfolio together with 1 GW of “safe harbour” equipment for $180 million. The purchase is expected to be completed within the next 30 days.
The projects will be located across 12 states with the greatest concentrations in Texas and the Midwest. Schemes totaling 2.2 GW are expected to reach a final investment decision by 2025, with the balance progressing by 2030. BP also reported that it is growing its renewables business in a disciplined manner as the projects are expected to meet its 8-10 per cent returns threshold.
The acquisition supports the company’s goal of reaching a net developed renewable generating capacity of 20 GW by 2025 while boosting its renewables pipeline to 23 GW from 14 GW. The current acquisition can create integrated renewable energy offers through its trading and customer franchises.
Earlier this month, Lightsource BP received permission from the New South Wales Department of Planning and Environment for its 400 MWdc (350 MWac) Wellington North Solar Farm. The new farm will be installed adjacent to the existing 200 MWdc (174 MWac) Wellington Solar Farm and it will be built on a 970-hectare plot of land near Dubbo, New South Wales. The program will use 1.2 million bifacial solar panels, assisting New South Wales in achieving its target of raising its green energy share to more than 60 per cent by 2030 and assisting BP in meeting its net-zero goals.