BP and Japanese power generator JERA said on Monday they have agreed to form a standalone joint venture combining their offshore wind operations.
The 50-50 venture, called JERA Nex bp, will include operating assets and development projects with a potential generation capacity of 13 gigawatts, BP said in a statement.
The companies will contribute interests comprising operating assets with around 1.0GW net generating capacity, a strong pipeline of high-quality development projects with around 7.5GW capacity, and further secured leases with around 4.5GW of potential capacity.
JERA Nex bp will pursue value-driven development of competitive projects, as well as optimising its extensive combined portfolio. Initially it is expected to focus on progressing existing projects in North-West Europe, Australia and Japan, and to continue to mature the development pipeline of significant longer-term opportunities.
“Offshore wind has significant potential and is a critical component of the energy transition," said Yukio Kani, CEO of JERA. "The sector is at an inflection point, and we believe the transformative partnership launched today between our two companies combines the resources, capabilities, and network necessary to be a world-class offshore wind company, and in doing so, realise the potential of offshore wind globally, while positioning this business for long term success.
"Today’s announcement also demonstrates JERA’s commitment to the offshore business in Europe, Japan and the rest of the world and is a natural evolution of our strategy that places collaboration at the heart of our approach to renewables.”
The move is a key step in CEO Murray Auchincloss's drive to reduce BP's focus on renewables in order to focus on higher-return operations, primarily in oil and gas.
(Reporting by Ron Bousso; editing by Jason Neely)