BP has announced the merger of its offshore wind business with Japan’s energy firm JERA to create a new joint venture, JERA Nex bp. The deal, which is valued at up to $5.8 billion in investments by 2030, marks a shift in BP’s strategy as it refocuses on its core oil and gas operations.
The UK-based energy giant has been exploring ways to reduce its spending on offshore wind projects for months. BP had even considered selling a partial stake in its wind business as part of this effort. Now, in partnership with JERA, BP has decided to consolidate its offshore wind assets into a standalone venture that will become one of the largest offshore wind developers globally.
The new joint venture, JERA Nex bp, will be equally owned by BP and JERA. It will manage a portfolio of operating assets and development projects with a total potential generating capacity of 13 gigawatts (GW).
To support future growth, BP and JERA have committed to invest up to $5.8 billion by 2030 in the joint venture. The funding will focus on projects in Northwest Europe, Australia, and Japan, with the aim of advancing existing projects and developing long-term opportunities.
JERA Nex bp, which will be headquartered in London, is expected to become one of the world’s top five offshore wind developers. BP’s CEO, Murray Auchincloss, described the venture as a key platform to support the global transition to cleaner energy while maintaining a capital-light approach for shareholders.
“This partnership will provide a strong vehicle for growth in an electrifying world,” Auchincloss said. “It allows us to focus on our oil and gas resources while still advancing our renewables business in a sustainable way.”
Auchincloss, who succeeded Bernard Looney earlier this year, is expected to reveal BP’s new strategy in February 2025. Reports suggest the new plan will include a shift away from BP’s earlier target to cut its oil and gas production by the end of the decade.
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