bp announced Thursday a $1.1 billion investment to enter the offshore wind sector, purchasing a 50% stake in two major developments in the U.S. with Equinor, Kallanish Energy reports.
The Norwegian energy firm is welcoming bp to its Beacon Wind and Empire Wind leases, which will be developed in four stages. The first lease, located off Massachusetts, is planned to have 2 gigawatts of capacity, while the second, located off New York, will generate up to 2.4GW.
Equinor will remain the operator of the projects, which will supply electricity to over 2 million households. The transaction is expected to close early next year, subject to regulatory approvals.
“We believe we can achieve more by working together,” the companies said, adding their partnership has “sky-high ambitions.”
bp’s new strategy aims to increase its low carbon investment 10-fold to around $5 billion a year by 2030. The goal is to boost its renewables portfolio, from 2.5GW in 2019 to roughly 50GW by 2030.
“This is an important early step in the delivery of our new strategy and pivot to truly becoming an integrated energy company,” said bp CEO Bernard Looney. “Offshore wind is growing at around 20% a year globally and recognized as being a core part of the world’s need to limit emissions.”
The U.S. is also pioneering in the offshore wind arena, looking to develop 30GW of capacity by 2030. Through this partnership, Equinor and bp will consider future joint opportunities in the country for both bottom-fixed and floating offshore wind, and will leverage relevant expertise to jointly grow scale, Equinor said in a statement.
“As the partnership develops, both companies hope to expand this cooperation further in a market that is forecast to grow to between 600 and 800GW globally by 2050,” Equinor added.
While bp is entering a new energy segment, Equinor is working to build scale in core areas such as the North Sea, the U.S. and the Baltic Sea. It’s also securing growth options in other selected markets for bottom-fixed and floating offshore wind.
This post appeared first on Kallanish Energy News.