bp to take full ownership of Lightsource bp

Lightsource bp opened a 300 MW solar project that will position EVRAZ’s Pueblo, Colo., steel mill as one of the world’s first steel mills to run almost entirely on solar. (Courtesy: Lightsource bp)

bp has agreed to acquire the 50.03% interest it does not already own in Lightsource bp, a developer and operator of utility-scale solar and battery storage assets.

bp says full ownership will enable it to further scale up Lightsource bp and create additional value by applying bp’s complementary capabilities and strengths – including in finance and trading – fully to the business. bp will continue to target double-digit equity returns from this business.

Lightsource bp operates with a capital-light, develop, engineer, construct, and farm down business model that aims to create value through selling majority interests in assets it has developed to strategic partners.

In addition, bp intends to use Lightsource bp’s capabilities as a developer of utility-scale onshore renewable power to help meet its own demand for low-carbon power. bp says this integration is expected to underpin and de-risk the delivery of bp’s targets for its transition growth engines – in hydrogen, EV charging, and biofuels as well as in power trading.

In 2021, former Lightsource bp North America CEO Kevin Smith joined the “Factor This!” podcast to describe how Lightsource bp, one of the world’s largest solar developers, was approaching the Auxin Solar tariff petition and the threat of additional tariffs on imported modules.

In June, Lightsource bp closed on a $460 million multi-project financing package, which will support the construction and operation of a 368 MW portfolio that includes two utility-scale solar projects.

The 188 MW Honeysuckle Solar near South Bend, Indiana, has a long-term power purchase agreement with AEP Energy Partners. The 180 MW Prairie Ronde Solar northwest of Baton Rouge, Louisiana, has a long-term power purchase agreement with McDonald’s Corp. Both projects are expected to enter service in 2024.

Lightsource bp developed, financed, constructed, and will operate a 135 MW pollinator-friendly solar farm that it completed in October. The solar farm will deliver clean energy to Conway Corp under a power purchase agreement with Lightsource bp. Working with the Arkansas Monarch Conservation Partnership, Lightsource bp and Conway Corp have established a five-acre native pollinator garden within the solar farm, featuring 46 varieties of Arkansas native plants.