BP and Japan's JERA to merge offshore wind businesses
New equally owned joint venture company will be based out of London with 13GW of projects already either in operation or development
BP and Japan’s JERA are combining their offshore wind businesses to form a new joint venture they say will be one of the largest global developers, owners and operators in the sector.
The 50-50 joint venture will be a global business called JERA Nex bp, with 13GW of projects either in operation or development. It will be based in London.
Formation of JERA Nex bp is intended to accelerate development from the combined pipeline and bolster access to competitive financing, the partners said in an announcement this morning.
Supporting this, the partners have agreed to provide capital funding for investments committed to before the end of 2030 of up to $5.8bn.
The companies will contribute interests comprising operating assets with around 1GW net generating capacity, a pipeline of development projects with around 7.5GW capacity, and further secured leases with around 4.5GW of potential capacity.
Initially, JERA Nex bp is expected to focus on progressing existing projects in northwest Europe, Australia and Japan, and to continue to mature the development pipeline of significant longer-term opportunities.
BP CEO Murray Auchincloss said: “We are very pleased to have reached agreement with JERA to form a top five wind developer globally.”
“This will be a very strong vehicle to grow into an electrifying world, while maintaining a capital-light model for our shareholders. We very much look forward to combining our strengths in Europe and Asia-Pacific to create another innovative platform.”
Yukio Kani, CEO of JERA said that offshore wind “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.”
JERA will nominate the CEO of JERA Nex bp, while BP will nominate the CFO. On completion, offshore wind teams from both JERA and JERA Nex and staff from BP's offshore wind business will be expected to move into the new business.