News, Offshore, Wind Power

bp takes 50% interest in Equinor’s Empire Wind and Beacon Wind offshore wind projects

The move marks the oil and gas giant’s first foray into offshore wind

Oil major bp announced this week via its internal magazine that it has formed a strategic partnership with Equinor to develop major offshore wind farms in the US and to jointly pursue further offshore wind opportunities in the country.

The announcement marks bp’s first venture into offshore wind and comes a month after bp announced a low-carbon investment strategy that would include growing the renewable energy generating capacity it develops from from 2.5 gigawatts (GW) in 2019 to around 50 GW by 2030.

The deal with Equinor through which bp will purchase 50% interest in Equinor’s Empire Wind and Beacon Wind assets is worth about $1.1 billion, said bp. In addition, the strategic partnership includes the development of existing offshore wind license interests on the US East Coast and to jointly pursue further opportunities for offshore wind in the US.

Dev Sanyal, executive vice president of gas and low carbon energy with bp said in the piece:

“This partnership provides an extraordinary opportunity for our two companies to work together in pursuit of our shared ambitions — creating cleaner, better energy for the world. It will leverage bp’s trading expertise and onshore wind experience with Equinor’s sector-leading track record in offshore wind to deliver value for our shareholders. We look forward to exploring further opportunities in the fast-growing US wind markets.”

Empire Wind is located offshore New York City, with a total area of 80,000 acres and is expected to have an installed capacity of 2 GW.

Beacon Wind is located offshore Massachusetts state with a total area of 128,000 acres and is expected to have an installed capacity of 2.4 GW.

Equinor will remain the operator of the wind farms.

The deal is expected to close in early-2021.