BP and new offshore wind partner JERA among winners in Japan's latest tender
Pair feature in two different consortium groups both to use Siemens Gamesa turbines as Japan awards development rights for another 1.1GW
UK oil major BP and Japan’s JERA group have emerged among the winners in Japan’s third offshore wind tender, as results emerged on Tuesday.
The government of Japan awarded exclusive development rights for two areas with a a total capacity of 1.1GW.
The rights to develop a 615MW fixed-bottom offshore wind project located off the southern coast of Aomori Prefecture went to an all-Japanese consortium made up of utility giant JERA group, renewables firm Green Power Investment Co (GPI) and Tohoku Electric Power.
The bid specified deployment of 41 Siemens Gamesa wind turbines with a rating of 15MW each.
In a statement, JERA noted that this project will be drawn under the management of a new joint venture company when the group’s own renewables arm, JERA Nex, completes its merger with the offshore wind business of Britain’s BP.
“Going forward, JERA aims to enhance its expertise and strengthen its competitive fundraising capabilities through JERA Nex bp, a top-tier global offshore wind joint venture with BP,” the utility stated.
In fact, BP was also a member of the consortium that won exclusive development rights to the second area awarded in Japan's latest offshore wind tender.
Consortium partners Marubeni Corporation, Kansai Electric Power Company, Tokyo Gas, Marutaka Corporation and BP will be able to develop 450MW of fixed-bottom wind capacity in an area located off the coast of Yuza Town, in the Yamagata Prefecture.
This bid also specified the deployment of 30 Siemens Gamesa wind turbines with a rating of 15MW each.
The two winning bids were priced at identical 3 Japanese Yen ($0.02) per kilowatt hour. Scoring was based on a feasibility points system with criteria to assess which projects are deemed to the most economically beneficial, and socially and environmentally sustainable.
The development of both wind farms is subject to obtaining the necessary internal and external consents and approvals. The anticipated commercial operation date for both will be in 2030.
In its longer term ambitions, the government of Japan aims to deploy 10GW of offshore wind capacity by 2030 and up to 45GW by 2040 as part of its target to reach net zero emissions by 2050.
Merger path
For BP, the tender result marks an entry into an offshore wind market which the UK described as a strategic market with growth potential.
An agreement by BP and JERA to combine their offshore wind businesses and form a new standalone, equally owned joint venture was announced three weeks ago.
Completion of the transaction is expected by the end of the third quarter of 2025, subject to regulatory and other approvals.
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