British oil producer BP has announced that it would buy a 43 per cent stake in solar energy firm Lightsource for US$200mn
BP will pay Lightsource US$50mn when the deal is completed, with the balance paid in instalments over three years. The majority of the investment will fund Lightsource?s growth pipeline, BP said.
Nick Boyle, group CEO and founder of Lightsource, said, ?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.?
Bob Dudley, BP group chief executive added, ?BP has been committed to advancing lower-carbon energy for over 20 years and we?re excited to be coming back to solar, but 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.?
Global installed solar generating capacity more than tripled in the past four years and grew by more than 30 per cent in 2016 alone, according to BP?s Statistical Review of World Energy. BP?s Energy Outlook analysis sees solar as likely to generate around a third of the world?s total renewable power and up to 10 per cent of total global power by 2035.
BP will have two seats on Lightsource board and the solar company will be renamed Lightsource BP.
Lightsource BP will target the growing demand for large-scale solar projects and will continue to develop and deliver its 6 GW growth pipeline, which is largely focused in the Middle East, USA, India and Europe, according to company sources.
