bp plc agreed to spin off its offshore-wind business through a deal with JERA Co. Inc. to form a new joint venture company to be called JERA Nex bp.
The 50-50 JV was created with the aim of advancing existing wind projects, but bp said the standalone business will "significantly reduce BP’s anticipated investment into renewables through the rest of this decade."
The combine will hold a mix of operating assets and development projects. Operating assets currently stand at around 1 Gw net generating capacity, while development projects hold around 7.5 Gw capacity. Secured leases contain about 4.5 Gw of potential capacity, the companies said in a joint release Dec. 9.
The partners agreed to provide capital funding for investments committed to before end-2030 of up to $5.8 billion.
Noting the deal as the creation of a "top five wind developer globally," Murray Auchincloss, bp chief executive officer, said the JV "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."
Since beginning its offshore wind portfolio in 2019, bp now holds assets with total potential generating capacity of 9.7 Gw net (5.7 Gw development projects, 4 Gw secured leases), the company said.
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 secured leases off Scotland and the east coast of the US.
JERA entered the offshore wind market in 2019 through investments in projects in the UK and Taiwan. In 2023 it acquired Parkwind, subsequently spinning out a renewables unit, JERA Nex. It owns and operates wind farms in Belgium, Germany, Japan, and Taiwan and has development projects in Japan, Ireland, and Australia.
JERA Nex bp will be based in London. Its chief executive officer will be nominated by JERA and its chief financial officer will be nominated by bp. Offshore wind teams from JERA and JERA Nex and staff from bp’s offshore wind business will be expected to move into the new business, the companies said.
Subject to regulatory and other approvals, completion of the formation of JERA Nex bp is expected by the end of third-quarter 2025.
