Global energy conglomerate bp will acquire an additional 50.3% interest in Lightsource bp for a base equity value of £254 million (~$320 million), taking full ownership of the global utility-scale solar and battery storage asset developer.

The acquisition allows for both parties to scale up Lightsource bp’s operations and leverage the former’s finance and trading capabilities to target double-digit equity.

After assuming ownership, bp is expected to leverage Lightsource bp’s capacity as a cost-competitive utility-scale onshore renewable power developer 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 across hydrogen, EV charging, and biofuels, as well as in power trading.

Lightsource bp operates with a proven capital-light, develop, and farm-down business model that creates value by selling majority interests in assets it has developed to strategic partners. This model has allowed the company to build a track record of delivering renewable projects with equity returns in the mid-teens.

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

In 2022, bp acquired a 40.5% stake in one of the world’s largest renewable and green hydrogen hubs, the Asian Renewable Energy Hub.

Earlier this year, the company began constructing its 134 MW Arche Solar project in Ohio’s Fulton County. Once operational, this project will generate enough clean energy annually to power the equivalent of more than 20,000 homes in the country.