LONDON (Reuters) -BP is seeking to sell 50% of its solar unit Lightsource bp to a strategic partner for cash and a commitment of future investments, with bids due in June, the energy major said in a sales document seen by Reuters.
The London-listed energy company is planning asset sales and partnerships as part of a broader plan to address investor concerns. The firm wants to cut costs and improve its return on investments to boost its share price and profit.
BP has been under pressure from investors, notably activist Elliott Management, which built a near 5% stake in the company in recent months as it underperformed peers like Shell and Exxon.
In a major strategy shake up, BP announced plans last month to cut investments in renewable energy and to increase annual oil and gas spending to $10 billion.
When asked about the sales document, BP said it had an intent to bring in a partner for Lightsource bp and launch a sales process in the near future but declined to comment further.
CEO Murray Auchincloss said in February that BP had been considering bringing in partners to the solar developer to help boost returns from the fast-growing business.
In a document dated March 2025 seen by Reuters, the company said it was seeking a strategic partner for half of the solar company this year, in a cash transaction with a commitment for follow-on investment.
Called Project Scala, BP is seeking a strategic partnership with “established leaders with extensive experience” in the renewables industry, according to the document. Governance of the emerging entity would reflect joint control of the assets, BP said in the document.
Initial, non-binding offers are due in June and the company will shortlist bidders in July.
It said the platform had 5.7 gigawatts of operational assets and was active in 19 markets, with more than 2 GW of assets constructed in 2024. It said Lightsource bp was expanding into battery storage and onshore wind.
BP also said last month it was reviewing its lubricants business, Castrol, and targeting $20 billion in divestments by 2027.
(Reporting by Andres Gonzalez Estebaran and Shadia Nasralla. Editing Anousha Sakoui, Kirsten Donovan)
