BP Sells U.S. Biogas Business Amid Shift to Oil Profits

BP has announced plans to sell its approximately $3 billion U.S. biogas business, Archaea, less than a week after putting its North Sea operations on the market. This move marks the latest step by CEO Meg O’Neill, who took charge in April, to streamline the energy company's global operations.

The U.S. business, based in Texas, specializes in capturing methane gas from landfill sites and converting it into renewable natural gas. BP had acquired Archaea in 2022 as part of a significant investment in renewable power under its former CEO Bernard Looney. However, the business did not meet expectations, leading BP to substantially write down its value late last year.

O’Neill stated that the decision to sell Archaea aligns with her strategy to "focus on the assets with the strongest potential to deliver competitive returns and long-term value." This divestment follows BP's recent sale of its Gelsenkirchen refinery in Germany and represents a broader trend of oil and gas companies retreating from the green energy sector. Rival Shell recently sold a portfolio of European solar and onshore wind farms to TotalEnergies.

BP reported a profit of $8.3 billion (£6.6 billion) for the first half of the year, more than double the $3.5 billion (£2.8 billion) earned in the same period last year. Revenues increased to $115 billion (£92 billion) from $89 billion (£71 billion). The company attributed its financial success partly to surging oil prices, exacerbated by disruptions to global fuel supplies stemming from the conflict in the Middle East.

Despite these strong profits, O’Neill indicated that BP is "not making the most of our potential" and that its recent performance has "not met our own expectations, let alone those of our shareholders." She emphasized the need for internal assessment and change to "get fit to grow."