BP and JERA have agreed to merge their offshore wind operations into a joint venture (JV), JERA Nex bp, with a 13GW potential net generating capacity.
JERA Nex bp will be a 50:50 JV, which will combine offshore wind assets and the expertise of the two companies.
The new company will have a balanced portfolio of operating assets and a development pipeline, aiming to become one of the world’s largest offshore wind developers, owners, and operators.
The partners have committed up to $5.8bn in capital funding for investments before the end of 2030 to support the venture’s growth.
The formation of the JV is expected to accelerate the development of the combined pipeline and enhance access to competitive financing.
The JV will be based in London, with the CEO nominated by JERA and the CFO by bp.
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By GlobalDataRegulatory and other approvals are pending, intending to complete the formation by the end of the third quarter of 2025.
JERA Nex bp will inherit approximately 1GW of operating assets, including the Formosa 1 site in Taiwan, and a development pipeline of around 7.5GW.
Additionally, it has secured leases with a potential capacity of approximately 4.5GW.
The JV will focus on advancing projects in north-west Europe, Australia, and Japan, while also developing its significant long-term opportunity pipeline.
The partners have outlined a clear funding framework for the JV, which includes leveraging asset revenues and accessing competitive financing.
The new business is expected to leverage the global relationships and partnerships of both shareholders, including those across the supply chain.
JERA CEO Yukio Kani said: “Offshore wind has significant potential and is a critical component of the energy transition.
“The sector is at an inflection point, and we believe the transformative partnership launched today between our two companies combines the resources, capabilities, and network necessary to be a world-class offshore wind company, and in doing so, realise the potential of offshore wind globally, while positioning this business for long term success.
“Today’s announcement also demonstrates JERA’s commitment to the offshore business in Europe, Japan and the rest of the world and is a natural evolution of our strategy that places collaboration at the heart of our approach to renewables.”
The JV will also utilise the global trading capabilities of both JERA and bp to manage and market power from its assets through various offtake channels.
JERA has been active in the offshore wind market since 2019, with investments in the UK and Taiwan, and the acquisition of Belgium’s Parkwind.
JERA Nex was later established to focus on renewable energy targets within JERA’s 2035 growth strategy.
bp has been expanding its offshore wind portfolio since 2019 and currently has a net development pipeline of 9.7GW, including projects in the UK, Germany, Scotland, and the US East Coast.
bp CEO Murray Auchincloss said: “We are very pleased to have reached an agreement with JERA to form a top-five wind developer globally.
“This 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.”
Meanwhile, Matthias Bausenwein, bp’s head of offshore wind, is leaving the company, Reuters reported, citing a company spokesperson. Bausenwein joined bp from Ørsted in August 2022 to lead the company’s offshore wind projects.
He is the second senior executive to depart bp’s renewables division, following Anja-Isabel Dotzenrath, who resigned in April after just over two years in the role.