Richard Parks BP is forming a joint venture with Japan’s power company JERA to establish a major global player in offshore wind energy. This partnership allows BP to reduce its direct investment in renewables while maintaining a presence in the green energy market.
A $5.8 Billion Investment in Wind Energy
BP and JERA have agreed to invest up to $5.8 billion (€5.51 billion) by 2030. BP’s share of the investment will be $3.25 billion (€3.09 billion). This marks a shift from BP’s earlier pledge to invest $10 billion (€9.5 billion) in renewables between 2023 and 2030.
BP’s CEO Murray Auchincloss described the joint venture as a strategic move. “This partnership will help us expand in an electrifying world while keeping a capital-light approach for our shareholders,” he stated.
Global Reach and Initial Focus Areas
The new venture, called JERA Nex bp, will combine the wind energy assets of both companies, amounting to a potential 13GW generating capacity.
JERA operates wind farms in Belgium, Germany, Japan, and Taiwan and has projects in development in Ireland, Japan, and Australia. BP has wind projects in the UK’s Irish Sea, Germany’s North Sea, Scotland, and off the US East Coast. Initially, the focus will be on advancing projects in North-West Europe, Australia, and Japan.
Strategic Shift in BP’s Green Commitments
This move reflects BP’s broader strategy shift under new CEO Murray Auchincloss. Following the resignation of former CEO Bernard Looney and a 15% drop in BP’s share price this year, Auchincloss has scaled back BP’s renewable energy targets to regain investor confidence.
BP’s competitors are making similar adjustments. Shell has announced it won’t pursue new offshore wind projects but will maintain its current assets. Equinor is also reducing its workforce in the renewables sector.
BP’s joint venture with JERA signals a more cautious approach to the energy transition, balancing green ambitions with financial stability.