*

BP to integrate onshore renewable power into Lightsource

bp

*

Says sale process to start shortly

(Adds detail from statement and background throughout)

Sept 16 (Reuters) - BP plans to sell its U.S.

onshore wind energy business, it announced on Monday, saying the

assets were not aligned with its growth plans.

BP said it will launch the sale process shortly for the wind

assets, bp Wind Energy, which has interests in 10 operating

onshore wind energy assets across seven U.S. states.

"We believe the business is likely to be of greater value

for another owner," William Lin, BP's executive vice president

for gas and low carbon energy said in a statement.

Several offshore wind companies have cancelled or sought to

renegotiate power contracts for planned U.S. projects in the

past year, citing soaring materials costs, high interest rates,

and supply chain disruptions.

bp Wind Energy's assets, which have net total generating

capacity of 1.3 gigawatts, are not aligned with BP's plans for

growth in Lightsource bp, the London-listed company said.

BP announced in November it would take full ownership of

Lightsource bp, Europe's largest solar energy developer. The

deal to build up its renewable energy capacity is expected to be

complete by the end of the year.

It said on Monday it would integrate its onshore renewable

power development into Lightsource bp.

The move also comes as BP's new CEO Murray Auchincloss

has imposed a hiring freeze and paused new offshore wind

projects as he places a renewed emphasis on oil and gas amid

investor discontent over its energy transition strategy, sources

at the company told Reuters in June.

It marks a stark reversal from the direction the CEO's

predecessor Bernard Looney took to rapidly move away from fossil

fuels. This has weighed on BP's shares as returns from

renewables shrank, while profits from oil and gas soared in the

wake of the COVID-19 pandemic and Russia's invasion of Ukraine.

Last month, Danish renewable energy group Orsted

reported 3.9 billion Danish crowns ($581.59 million) in

impairment losses for the second quarter, partly due to delays

in a major U.S. offshore wind project.

($1 = 6.7058 Danish crowns)