September 10, 2020 Read More →

BP buys into U.S. offshore wind market, inks $1.1 billion deal with Equinor

S&P Global Market Intelligence ($):

Equinor ASA has agreed to sell a 50% stake in two offshore wind farms to BP PLC, establishing a strategic partnership to further develop similar projects in the U.S.

The Norwegian state-owned energy company will sell the nonoperated stake in the 2-GW Empire Wind, located off the coast of New York State, and in the 2.4-GW Beacon Wind, located off the coast of Massachusetts, for a total consideration before adjustments of $1.1 billion, according to a Sept. 10 news release.

Equinor currently holds 100% interest in both leases and will remain project operator through the development, construction and operations phases. BP’s acquisition of interests in the wind projects is effective Jan. 1. The deal is anticipated to close in early 2021.

“Optimizing equity and bringing in new partners allow us to realize value, increasing our financial flexibility to fund further growth,” said Pål Eitrheim, executive vice president for new energy solutions in Equinor.

Both companies hope to expand this cooperation further by considering future joint opportunities in the U.S. for bottom-fixed and floating offshore wind.

Equinor aims to grow its renewable energy capacity to 4 GW to 6 GW by 2026 and 12 GW to 16 GW by 2035, and recently announced its expectation to accelerate these ambitions. BP is also looking to increase annual low carbon investment to around $5 billion a year by 2030. As part of its new strategy, the company plans to increase its developed renewable generating capacity from 2.5 GW in 2019 to around 50 GW by 2030.

[Maryam Adeeb]

More ($): BP marks entry in US offshore wind with $1.1B deal, partnership with Equinor

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