TWO OF THE WORLD’s energy majors are to hive off their offshore wind interests in a new, standalone joint venture they say will be one of the world’s largest developers, owners and operators.
Britain’s BP and Japan’s JERA will establish JERA Nex bp, “with a balanced mix of operating assets and development projects with total 13GW potential net generating capacity”. Formation of JERA Nex bp is intended to accelerate development from the combined pipeline and bolster access to competitive financing, the partners say.
Supporting this, the partners have agreed to provide capital funding for investments committed to before end of 2030 of up to US$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 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.”
JERA Australia, like its parent, is a joint venture between Tokyo Electric Power Group (TEPCO) and Chubu Electric Power Group. It has two local offshore wind projects under development, the 752MW Blue Mackerel and 600MW Spinifex proposals, both sited off the southern coast of Victoria, and both part-owned Belgian company Parkwind, acquired by JERA Nex last year. Spinifex is a jv with Alinta Energy.
“Offshore wind has significant potential and is a critical component of the energy transition,” said Yukio Kani, global CEO and chair of JERA.
“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.”
Murray Auchincloss, bp CEO said: “We are very pleased to have reached 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.”
