BP is to buy a 43 per cent stake in the solar developer Lightsource, in a deal worth $200 million.
The international oil and gas company announced today (15 December) it has agreed to form a strategic partnership with Lightsource, which will now be rebranded as Lightsource BP.
Once completed, BP will have a 43 per cent stake in the company and two seats on the board of directors.
BP will pay Lightsource $50million on completion of the agreement, with the balance paid in installments over three years
Lightsource has commissioned 1.3 GW of solar capacity to date and manages approximately 2GW of capacity under long-term operations and maintenance contracts across Europe.
According to a statement from BP, the “great majority” of this money will fund Lightsource’s “worldwide growth pipeline”.
BP’s group chief executive, Bob Dudley, said it was “excited to be coming back to solar” and in a “new and very different way”.
“While our history in the solar industry was centred on manufacturing panels, Lightsource BP will instead grow value through developing and managing major solar projects around the world,” said Dudley.
“I am confident that the combination of Lightsource’s expertise and experience with BP’s relationships and resources will propel this innovative business to even more rapid growth.”
The chief executive and founder of Lightsource, Nick Boyle added: “We founded Lightsource to lead the solar revolution and chose to partner with BP because, like us, their ambition is to build and grow this company for the long-term.
“Not only does this partnership make strategic sense, but our combined forces will be part of accelerating the low-carbon transition. Solar power is the fastest growing source of new energy and we are excited to be at the forefront of this development.”