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

Full ownership will now enable BP to further scale up Lightsource and create additional value by applying BP’s complementary capabilities and strengths, including in finance and trading, fully to the business.

Lightsource operates in 19 countries and has built a 61GW development pipeline. Following completion BP intends to maintain it as an independent brand and organisation. Under the acquisition agreement BP will acquire the remaining stake from the company’s founders, management, and staff. The parties have agreed a base equity value of £254m for the interest. For full year 2022, the company reported underlying EBITDA of £287m had corporate level debt adjusted for cash of £1.5bn, excluding project finance.

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

Anja-Isabel Dotzenrath, executive vice president for gas and low-carbon energy, said: “This is a natural evolution of the partnership we have built over the past six years, now we will be able to take Lightsource to the next level of profitable growth and performance. 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.”

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