BP faces new pressure from Elliott to abandon renewable projects

BP is under fresh pressure from activist investor Elliott Management to abandon its renewable energy ventures entirely and refocus on oil and gas. The hedge fund, which is believed to hold a stake in BP worth approximately £3.5 billion, has expressed dissatisfaction with the company’s partial shift away from green investments.

Last week, BP announced plans to scale back its spending on renewables by more than £4 billion annually, signalling a corporate reset towards traditional energy sources. Investments in oil and gas are now set to rise by 20 percent to £8 billion a year. However, sources close to Elliott have claimed that these changes do not go far enough. The fund reportedly wants BP to exit renewable markets altogether, including solar and wind projects, areas where Elliott argues BP lacks the expertise or scale to succeed.

BP revealed that offshore wind and solar projects would move into joint ventures, and spending on transition businesses, including biofuels, carbon capture, and electric vehicle charging, would be reduced to between £1.2 billion and £1.6 billion annually. Assets such as its lubricants business Castrol, valued at around £8 billion, may also be sold to reduce borrowing.

Elliott’s position is that BP, like other oil majors, should prioritise oil and gas production while focusing on its strengths. It is thought the fund sees merit in BP’s expansion into electric vehicle charging networks, believing it aligns with the company’s expertise in petrol retailing. In contrast, ventures into renewable power generation, including wind and solar, have been criticised as unviable for the company.

BP’s transition strategy appears to echo Shell’s recent pivot under CEO Wael Sawan, who reduced that company’s investments in green energy to meet shareholder and investor expectations. Although Elliott may welcome BP’s decision to abandon its target of reducing oil and gas output by 2030, its demands for an outright exit from renewables suggest a deeper activist campaign could be on the horizon.

In a bid to strengthen its financial position, BP also announced plans to raise £16 billion through asset sales. The measures reflect the company’s principle of ensuring shareholder returns remain robust amid a changing energy landscape. Both BP and Elliott Management have thus far declined to comment publicly on these developments.