BP’s solar projects in Texas get big boost
Lightsource BP, a global solar company half owned by the British oil major, is building two solar projects in North Texas at a time that corporations are buying more green energy.
The company on Tuesday said it secured $380 million in financing to build the Elm Branch and Briar Creek solar projects, located about 40 miles south of Dallas.
“This transaction is a demonstration of the low risk and stable yield opportunities that renewable energy projects offer to investors, the quality and bankability of our developed assets, and the confidence that top-tier investors have in Lightsource BP,” said Kevin Smith, the company’s CEO of the Americas, in a statement.
Lightsource BP has started construction of the Elm Branch and Briar Creek projects, both of which are expected to begin commercial operation this year. When
complete, Elm Branch will be able to produce up to 163 megawatts to power almost 25,000 homes, and Briar Creek will be able to produce 153megawatts.
BP in recent months has moved aggressively to prepare for the energy transition, shifting spending away from its traditional oil and gas businesses to renewable energy projects. The company plans to increase its annual investments in wind and solar projects by tenfold to around $5 billion a year, and over time, reduce its oil and gas production to meet its net-zero carbon emissions goal by 2050.
The company over the past year has sold its petrochemicals business, acquired an Indiana wind farm and partnered with Norway-based Equinor to develop four offshore wind projects off the coast of New York and Massachusetts. BP last summer also donated $2 million to the city of Houston and will serve as a strategic partner to help the city’s government become a netzero carbon emitter by 2050.
Earlier this month, Lightsource BP began operating its $250 million Impact Solar project on 1,500 acres in Lamar County, northwest of Dallas. The 260-megawatt solar project can power more than 41,000 homes in North Texas.
The additional generation comes as
companies around the world bought 23.7 gigawatts of clean energy power in 2020, 22 percent more than in 2019, research organization BloombergNEF said Tuesday. Most of the deals were in the U.S.
The increase came despite a year in which the COVID-19 pandemic led to a global recession.
“Corporations faced a wave of adversity in 2020 — internal corporate functions were disrupted on the outset of the pandemic, and many companies saw revenues plummet as global economies buckled,” BNEF senior associate Kyle Harrison said.
Uncertainty about U.S. energy policy ahead of the presidential election also was a factor.
“Question marks before — and after — the U.S. election further complicated long-term decision-making for companies. To not only maintain but grow the clean energy procurement market under these conditions is a testament to how high sustainability is on many corporations’ agendas,” Harrison said.