Thursday, April 4, 2013

BP Big Wind Blowout Sale

Update:4/5/2013
9:20AM


BP Plans to Divest US Wind Properties
 "Beyond Petroleum,” is now “back pedaling” away from that strategy. 

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 BP puts US wind farms up for sale


BP declined to speculate on what it may get for the wind farms, which it is thought could raise a further £991million but it forecast good offers for the assets, which include interests in 16 wind farms in nine states with a combined power generating capacity of about 2,600 megawatts. 
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BP wind sale highlights renewable energy struggles


But the decision to sell BP Wind Energy also reflects a broader trend, as the major oil companies struggle to balance shareholder demands for profits with the financial reality of renewable energy.
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BP to Sell $3.1 Billion in U.S. Wind in Retreat to Oil
BP owns about 1,600 megawatts of the 2,600 megawatts in operation, according to BP. Operating wind farms are worth $1.5 million to $2 million a megawatt, according to Bloomberg New Energy Finance data.
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BP's Recent Sale Shows Little Confidence in Renewable Energy
BP's proposed sale of its wind assets shows that it has little confidence in renewable energy. The company can generate much higher returns from fossil fuels and it needs all the returns it can muster after forking over billions of dollars to pay for the Gulf of Mexico disaster.
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No longer Beyond Petroleum?
BP has indicated that it is looking to sell its US wind farms, at a possible loss of over $2 billion.
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BP To Sell All U.S. Wind Farms, Re-Focus On Oil And Gas
Iowa, the largest wind energy producer in the U.S., generates about 25 percent of its energy from wind power. BP does not own any wind operations in Iowa, but does have stake in wind operations in California, Colorado, Kansas, Hawaii, Idaho, Indiana, Pennsylvania, South Dakota and Texas.
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Mixed Greens: BP beats renewables retreat, offers up wind assets
BP plans to dispose of interests in 16 operating wind farms in nine states with a total capacity of about 2,600 megawatts, the company said in an e-mailed statement. It will also sell projects in various stages of development, including 2,000MW of wind poised to start construction. BP also said in the statement that the sale was part of the company’s effort to re-position itself “for sustainable growth into the future.” It will leave BP’s renewable energy business limited to biofuels research and ethanol refining in Brazil. BP says it has invested $7.6 billion in alternative energy technology since 2005 and will meet its target of investing $8 billion in the sector by 2015 two years ahead of schedule.
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 BP puts U.S. wind farm arm up for sale
BP would not put a value on any sale, but said in a statement it expected "attractive offers" for the assets. They include interests in 16 operating wind farms in nine states with a combined generating capacity of around 2,600 megawatts of renewable power, as well as a portfolio of projects in various stages of development.
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BP (NYSE: BP) Sells Wind Assets
BP’s 16 wind farms across nine states will be on the market – carrying a total of 2,600 megawatts. Each megawatt is worth anywhere from $1.5 to $2 million. BP is also selling in-progress wind projects, worth $15,000 to $200,000 per megawatt.
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BP Announces Sale of US Wind Energy Assets

It exited the wind sector in Europe, and then near the end of last year announced that it would also sell its solar business. The final nail in the coffin to their original renewable energy plan is delivered by their announcement to now sell all US wind farm assets.
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BP to streamline by quitting wind in U.S
"When you're looking at spending $50 million in capital each year, and $50 million spent developing shale plays gives you $250 million in value, and $50 million spent developing a wind farm gives you $10 million in value, it's not hard to figure out," said Edward Hirs, an energy economist at the University of Houston.
[Huston chronicle]
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BP Selling US Wind Unit, Pares Renewable Energy Interests to Fuels

BP's wind businesses here in the U.S. encompasses 2.6 gigawatts (GW) of generating capacity spread across 16 farms in operation across nine states: Texas (4), Indiana (3), Colorado (2), Kansas (2), California, South Dakota, Idaho, Hawaii, and Pennsylvania. Another 2 GW or so of projects in development "are nearly shovel-ready," according to the company.
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BP’s renewables plaything
Overnight, BP announced it will abandon its wind farm business in the US. The oil and gas giant, its reputation still tarnished by the Gulf oil spill of a couple of years ago, will use the sale of the division to help pay off some of its spill liabilities.
 In other words, it’s a clean energy sell-off to pay for the sins of its dirty energy division. Oh, the irony.
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 BP is Waiting for interesting offers...
 BP Plc is opting out of its US wind arm... According to analysts' estimates, the UK-based oil and gas Company might even get as much as $1.5 billion for these assets. Not surprisingly, BP Plc did underline in a statement that it did not put any price tag on its US wind arm, yet it highlighted that it would wait for interesting offers.
 [IBTIMES]
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 BP's Lord Browne’s faults aren’t all hot air
    Much is being made of how BP’s plan to sell its US wind-energy business is a blow for the reputation of former chief executive John Browne, whom we all remember for making a huge zeitgeist-stroking noise around investing in green energy in the Nineties and Noughties. 
But that is to underplay his bigger fault: a regime of cost-cutting that came home to roost in Texas City, Alaska and the Gulf of Mexico.

3 comments:

Anonymous said...

The greedy green shirts now have no idea who will now control their property except it won't be Bee Pee. Same with those that may have mistakenly signed good neighbor agreements.

Anonymous said...

My suggestion..
Voters for Wind and Citizens for Fair Government hold a pig roast. Raise some money. Buy out Bee Pee. They could all become seasonals and wealthy retirees and hate each other.

Anonymous said...

From what I’ve heard going around town the green shirted thugs already hate each other.