Key Takeaways
- BP is selling the majority of its venture portfolio.
- The company has shifted focus away from clean energy.
- BP Ventures has struggled financially over the years.
- Completion of the sale is expected by mid-2027.
BP’s Shift in Strategy
BP has officially decided to close its corporate venture arm, a move that comes after two decades of fluctuating involvement in climate technology. Earlier this year, the oil company announced a strategic pivot away from clean energy, and today it confirmed the sale of most of its venture investments to Verdane, a private equity firm based in the Nordic region.
Investment History
Since its inception in 2007, BP Ventures has invested in a variety of sectors aimed at supporting the energy transition. These include green hydrogen, e-mobility, ride-hailing, autonomous vehicles, private jet charters, and geothermal energy. However, the financial performance of these investments has not met expectations. Reports indicate that the portfolio was valued at approximately $1.2 billion, which is about equal to the amount BP initially invested since the venture arm was established.
Future of BP Ventures
In a recent press release, BP stated it would retain a small number of investments where technology could still provide value to its core business. However, the company did not disclose which specific investments would remain. Additionally, BP has not provided details regarding the future of its Ventures employees, but layoffs appear likely as the company navigates this transition. The sale is anticipated to be finalized in the second quarter of 2027.