bp is selling its Archaea Energy landfill gas operation as new chief executive Meg O'Neill abandons the oil major's green energy strategy, citing poor investment returns.
Archaea, the largest landfill methane producer in the US, joins a growing list of renewable assets under review. bp impaired $4.2bn (EUR 3.9bn) of biogas and solar holdings at end 2025, then took a further $1.1bn (EUR 1bn) impairment in Q2 2026.
'When we look at some of the investments we've made, they have not delivered the returns that we expect,' O'Neill told CNBC.
The admission accompanied Q2 adjusted profits of $5.7bn (EUR 5.2bn), up 144% year on year from higher oil and gas prices.
O'Neill, who joined from Australian energy company Woodside in April, is reshaping bp's portfolio aggressively. Recent moves include sales of North Sea assets, closure of its venture capital arm and exit from Austrian fuel stations.
Debt reduction is the priority. bp aims for net debt below $18bn (EUR 16.5bn) by end 2026, one year ahead of schedule. Financial obligations fell $7bn (EUR 6.4bn) in the quarter, covering debt, hybrid bonds and Deepwater Horizon reparations.
Multiple unsolicited approaches have been made for North Sea assets, O'Neill said. She told UK Prime Minister Andy Burnham the country should prioritise domestic fossil fuel production, noting the UK derives 75% of energy from fossil fuels.
bp to divest Archaea biogas business due to ‘poor returns’
