bp has agreed to sell its US onshore wind business, bp Wind Energy, to the North American energy and development company, LS Power.

bp Wind Power has interests in 10 operating onshore wind assets across seven US states, operating nine of them.

The sale comes as the British firm looks to increase its oil and gas investment to approximately $10bn per annum and strengthen its portfolio in this field.

bp said that the deal is part of its $20bn divestment focus on its low carbon energy portfolio, which aims to prioritise investment choices "whilst delivering value for shareholders".

After close, bp Wind Energy will be owned and operated as part of LS Power’s portfolio company, Clearlight Energy, increasing its operating fleet to ~4.3GW.

Executive vice-president for gas and low carbon energy at bp, William Lin, said: "We have been clear that while low carbon energy has a role to play in a simpler, more focused bp, we will continue to rationalize and optimize our portfolio to generate value.

"The onshore US wind business has great assets and fantastic people, but we have concluded we are no longer the best owners to take it forward. I am pleased we have reached a mutually beneficial deal with LS Power and I look forward to working with them to support our people in maintaining safe and reliable operations as we transition ownership."

bp said that the deal is expected to conclude by the end of the year.

Investment analyst at AJ Bell, Dan Coatsworth, said that this is the asset disposal by the firm in as many weeks.

He concluded: "Last week it bundled up various operations including 300 Dutch retail sites and 15 electric vehicle charging hubs in a sale to Catom. These are only small assets in the grand scheme of things, and it will take a lot more, particularly on a larger scale, to truly win back the market’s favour."

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