BP, JERA Forming ‘One of Largest Global Offshore Wind Developers’

December 9, 2024, by Adrijana Buljan

BP and Japanese global renewable energy developer JERA have signed an agreement to combine their offshore wind businesses to establish a new standalone company. The two partners say the new company will become one of the largest global offshore wind developers, owners and operators with 13 GW in operational and in-development assets and USD 5.8 billion (around EUR 5.5 billion) in capital investment commitments.

“Offshore wind has significant potential and is a critical component of the energy transition. 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”, said Yukio Kani, CEO of JERA.

Through JERA Nex bp, the new equally owned joint venture company which will be based in London, UK, BP and JERA intend to accelerate development from their combined project pipeline and strengthen access to competitive financing. The plan is to pursue value-driven development of competitive projects, as well as to optimise JERA Nex bp’s combined portfolio, according to a press release the two companies issued on 9 December.

“Supporting this, the partners have agreed to provide capital funding for investments committed to before end of 2030 of up to $5.8 billion”, the press release states.

Subject to regulatory and other approvals, JERA Nex bp launching as a new offshore wind player is expected by the end of the third quarter of 2025.

The company will initially progress existing advanced developments from the joint portfolio and is expected to focus on the existing offshore wind projects in North-West Europe, Australia and Japan. The joint venture also says it will continue to mature the development pipeline of significant longer-term opportunities.

JERA, owned by Tokyo Electric Power Company (TEPCO) and Chubu Electric Power, entered the offshore wind market in 2019 and last year acquired Belgium offshore wind player, Parkwind. Following this, the Japanese company launched a renewable energy spinoff, JERA Nex. The company owns and operates wind farms in Belgium, Germany, Japan and Taiwan, including Northwester 2, Arcadis Ost 1 and Formosa 1 and 2, and has a development portfolio of projects in Japan, Ireland, and Australia.

BP also entered the market in 2019 and has built a development pipeline with a total potential generating capacity of 9.7 GW, of which 5.7 GW are projects in development and a further 4 GW has been secured in leases. Development projects are the Morgan and Mona projects in the UK Irish Sea, and Oceanbeat East and Oceanbeat West in Germany’s North Sea, with acreage secured off Scotland and the east coast of the US.

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The combination of the two companies’ offshore wind businesses will see JERA Nex bp having around 1 GW of operational offshore wind farms, a pipeline of projects in development of around 7.5 GW, and around 4.5 GW of potential further capacity in secured leases.

“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”, said Murray Auchincloss, BP’s CEO.