Energy major BP (BP) revealed plans Tuesday to market its multi-billion-dollar US biogas unit, Archaea Energy, to streamline its low-carbon portfolio.
The planned sale marks a major pivot in BP's low-carbon strategy. Originally acquired by BP to expand its footprint in lower-carbon fuels, Archaea Energy is the largest renewable natural gas producer in the US.
"Today, we are announcing our intention to sell Archaea, our biogas business in the US," said Meg O'Neill, chief executive officer.
Although the biogas unit was originally acquired to expand BP's low-carbon footprint, parts of the renewable energy portfolio underperformed relative to expectations, leading to multi-billion-dollar asset write-downs.
Selling the roughly $4 billion biogas business is part of a turnaround strategy to focus on higher-value operations and repair the balance sheet.