BP is beginning to explore the offshore wind energy sector through its association with Equinor in the U.S., with a $1.1 billion deal to develop joint projects with its existing offshore wind turbines in New York and Massachusetts.
The transaction also marks the start of a strategic association between the two companies to seek new opportunities in offshore wind and floating offshore wind in the U.S. market. The agreement will build on “the great experience to grow together,” the companies stated.
A first step
This association constitutes BP’s first venture into offshore wind. It constitutes a crucial step toward its aim to reaching 50 GW of renewable power by 2030. “This is an important early step in the delivery of our new strategy and our pivot to truly becoming an integrated energy company,” said CEO Bernard Looney.
“Offshore wind is growing at around 20% a year globally and is recognized as being a core part of meeting the world’s need to limit emissions,” he added.
From oil group to energy group
The group is aiming to increase its investments in low carbon energy tenfold by 2030, looking to reach $5 billion per year.
BP explained it no longer wishes to be considered as an “oil group” but rather as an “energy group”. It wants to adapt to the new reality sparked by the coronavirus pandemic and be carbon neutral by 2050.
A common goal
BP shares “our strong ambition to grow in renewable energy” stated Equinor CEO Eldar Saetre. “Our partnership underlines both companies’ strong commitment to accelerate the energy transition and combining our strengths will enable us to grow a profitable offshore wind business together in the US,” he underlined.
The British oil giant will control half of the Empire Wind complex located offshore New York, and Beacon Wind, offshore Massachusetts.
Empire Wind is located 25 to 50 kilometers South East of Long Island and spans over 32,000 hectares. Its installed capacity is expected to reach two gigawatts. Meanwhile, Beacon Wind is located 20 miles south of Nantucket, covers an area of 52,000 hectares, and has an installed capacity of more than 2.4 gigawatts.
For more information, check Energía16