BP scales again inexperienced agenda with wind sale

Pressure: Murray Auchincloss

BP is considering selling a minority stake in its offshore wind unit as the British energy giant continues to scale back its green agenda.

The London-listed oil major is on the hunt for partners for the business in the latest sign that boss Murray Auchincloss is watering down its renewables strategy.

Auchincloss, who took over from disgraced Bernard Looney in January, has faced mounting shareholder pressure to refocus on fossil fuels.

BP has lagged UK rival Shell and US giants Chevron and ExxonMobil, which have doubled down on oil and gas.

The company has lined up Bank of America to find partners for its offshore wind business, Reuters reported.

It is seeking to reduce its share of the huge investments needed to fund wind farm projects. BP is developing offshore wind farms in the UK, US, Germany, South Korea and Japan. A BP spokesman declined to comment.

Despite the potential sale, BP remains committed to developing its major offshore wind projects, one source told Reuters. The energy group has also recently invested in solar, biofuels and low-carbon hydrogen. This month it was revealed that Auchincloss is planning to scrap a target brought in by Looney to cut fossil fuel output by 2030.

The Canadian is eyeing major investments in the Middle East and the Gulf of Mexico to boost BP’s oil output. At the time a BP spokesman said: ‘As Murray said at the start of the year in our fourth quarter results, the direction is the same – but we are going to deliver as a simpler, more focused and higher value company.’

BP has previously said it plans to sell its US onshore wind business and this summer put plans for new offshore wind investment on ice.

The offshore wind sector has endured a tough few years as costs ballooned due to technical and supply chain problems as well as higher interest rates.

Shell is reportedly looking to exit several wind farm projects as the investments struggle to deliver returns.