Oil giant BP shutters its corporate venture arm after 20 years

BP has officially cut ties with its corporate venture arm after a tumultuous journey through the climate technology sector. The oil titan, which had shown inconsistent commitment to clean energy initiatives, has now decided to divest the majority of its venture investments—over ten companies—to Verdane, a private equity firm based in the Nordic region. Since its inception in 2007, BP Ventures has invested in a diverse array of sectors aimed at facilitating the energy transition. These include innovative fields such as green hydrogen, electric mobility, ride-sharing, autonomous transportation, private aviation, and geothermal energy. In an official announcement, BP stated that it would maintain a stake in a limited number of investments that could potentially yield value for its core business operations. However, details surrounding which companies will remain under BP's umbrella are still unclear, as the company has opted not to disclose this information. Additionally, the future of BP Ventures employees remains uncertain, and while BP has refrained from confirming layoffs, they appear likely given the circumstances. The transaction is projected to finalize by the second quarter of 2027. Historically, BP Ventures has faced challenges with its investments, which have not proven to be financially robust. According to Axios reporter Alan Neuhauser, the portfolio was estimated to be worth approximately $1.2 billion, matching the amount BP had invested since the division's launch in 2006.