Oil and gas giant bp has agreed to acquire the remaining 50.03% stake in utility-scale solar and battery developer, Lightsource bp.
The two parties stated that now was the “right time” for bp to take full ownership of Lightsource bp to further scale up the solar and battery developer. The integration is also hoped to “underpin and de-risk delivery of bp’s targets for its transition growth engines – in hydrogen, EV [electric vehicle] charging and biofuels as well as in power trading.”
At present, Lightsource bp had a pipeline of 61GW across 19 countries. In terms of operational projects, earlier this year (February 2023) the developer confirmed that two new solar projects – totalling 50MWp output – had begun operation.
According to bp, the acquisition terms are “highly competitive” to reflect market conditions with a base equity value of £254 million being agreed for the 50.03% interest.
Depending on company performance and the market value of pre-agreed assets within Lightsource bp’s portfolio, selling shareholders will still be able to receive payments post-acquisition.
Lightsource bp reported underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) of £287 million for the full year 2022 and had corporate level debt adjusted for cash of £1.5 billion, excluding project finance at the effective transaction date, 31 December 2022.
Anja-Isabel Dotzenrath, bp executive vice president for gas and low-carbon energy called the acquisition a “natural evolution” of the existing partnership between the two companies.
“We will continue to scale this successful business, and also apply its capabilities and expertise to help meet bp’s growing demand for low carbon power from our transition growth engines. I look forward to welcoming the Lightsource bp team to bp and am confident that together we can further strengthen its position as a leading global renewables developer,” continued Dotzenrath.
Announcing the acquisition on LinkedIn Dotzenrath added that the deal is expected to close mid-2024.