bp and JERA joining forces to create global offshore wind joint venture

Wind Energy – JV bp and JERA

bp and JERA have agreed to combine their offshore wind businesses to form a new standalone, equally-owned joint venture that will become one of the largest global offshore wind developers, owners and operators.

The combination will create a global business, to be called JERA Nex bp, with a balanced mix of operating assets and development projects with total of 13GW potential net generating capacity. The formation of JERA Nex bp is intended to accelerate development from the combined pipeline and bolster access to competitive financing. Supporting this, the partners have agreed to provide capital funding for investments committed to before the end of 2030 of up to $5.8 billion.

The companies will contribute interests comprising operating assets with around 1GW net generating capacity, a strong pipeline of high-quality development projects with around 7.5GW capacity, and further secured leases with around 4.5GW of potential capacity. JERA Nex bp will pursue the value-driven development of competitive projects, as well as optimising its extensive combined portfolio. Initially, it is expected to focus on progressing existing projects in North-West Europe, Australia, and Japan, and to continue to mature the development pipeline of significant longer-term opportunities.

The two partners have aligned expectations for the business to progress through disciplined and value-driven development, and have agreed on a clear funding framework for the rest of this decade to underpin this.

This includes leveraging asset revenues and accessing competitive financing itself, as well as proceeds from portfolio management. The equity investment contributed by the partners may be lower than the total agreed gross funding depending on project and venture financing and proceeds from asset farm-downs and sales.

JERA Nex bp is expected to benefit from the existing relationships and partnerships that the two shareholders have worldwide, including across the supply chain. The business will also draw on and benefit from the global trading capabilities of both partners to manage and market power from its assets into various offtake channels.

The parties have agreed to work to complete formation of JERA Nex bp, subject to regulatory and other approvals, with completion expected by end of the third quarter of 2025.

Original Source: https://ocean-energyresources.com/2024/12/09/bp-and-jera-joining-forces-to-create-global-offshore-wind-joint-venture/