BP has struck a deal valued at up to $5.8 billion (£4.5 billion) with Japan’s largest power producer, Jera, to accelerate the completion of its offshore wind projects by the end of the decade.
The oil major announced that this joint venture with Jera will enable it to adopt a “capital-light” approach to renewable energy investments. The partnership will initially focus on advancing existing offshore wind projects in North-West Europe, Australia, and Japan.
Earlier this year, BP paused all new offshore wind initiatives as the company, under the leadership of CEO Murray Auchincloss, redirected its priorities towards fossil fuels. Auchincloss, who became permanent chief executive in January, also imposed a hiring freeze within the offshore wind division.
BP highlighted that the collaboration with Jera will emphasise “disciplined and value-driven development” while helping the company “mature the development pipeline of significant long-term opportunities.”
Commenting on the agreement, Auchincloss said: “We are very pleased to have reached this agreement with Jera to establish a top-five global wind developer. This partnership provides a strong platform to grow in an electrifying world, while maintaining a capital-light approach for our shareholders. We look forward to leveraging our combined strengths in Europe and Asia-Pacific to create a truly innovative and impactful venture.”
