BP and JERA to create one of the largest offshore wind
BP and JERA Unite for Offshore Wind Power
Energy giant BP and Japan’s leading utility company, JERA, have announced a strategic partnership to create a new joint venture focused on offshore wind energy. This collaboration aims to combine their offshore wind businesses into a standalone entity named JERA Nex BP. The new company is set to become one of the largest offshore wind developers globally, boasting a significant portfolio of operating assets and development projects. With a total potential generating capacity of 13 gigawatts (GW), JERA Nex BP is poised to play a crucial role in the renewable energy sector.
Formation of JERA Nex BP
The formation of JERA Nex BP marks a significant milestone in the offshore wind industry. This new venture will be equally owned by BP and JERA, allowing both companies to leverage their strengths in renewable energy. The partnership is designed to accelerate the development of offshore wind projects and enhance access to competitive financing. To support this initiative, BP and JERA have committed to providing up to $5.8 billion in capital funding for investments made before the end of 2030.
JERA Nex BP will initially focus on advancing existing projects in key markets, including northwest Europe, Australia, and Japan. The joint venture will combine operating assets with approximately 1 GW of net generating capacity, a robust pipeline of high-quality development projects totaling around 7.5 GW, and secured leases with an additional potential capacity of 4.5 GW. This diverse portfolio will position JERA Nex BP as a formidable player in the offshore wind sector.
Murray Auchincloss, CEO of BP, expressed enthusiasm about the partnership, stating, “We are very pleased to have reached an agreement with JERA to form a top-five wind developer globally.” He emphasized the importance of maintaining a capital-light model for shareholders while contributing to a sustainable energy future. Yukio Kani, CEO of JERA, echoed this sentiment, highlighting the transformative potential of their collaboration in realizing the global potential of offshore wind energy.
Strategic Goals and Future Outlook
The strategic goals of JERA Nex BP extend beyond immediate project development. The joint venture aims to establish itself as a leader in the offshore wind market by harnessing the combined resources, capabilities, and networks of both companies. JERA has been actively involved in the offshore wind sector since 2019, making significant investments in projects across the UK and Taiwan. In 2023, JERA expanded its footprint by acquiring Belgium’s offshore wind player, Parkwind, which served as a platform for launching the focused renewables vehicle, JERA Nex.
BP has also been building its offshore wind portfolio since 2019, with a development pipeline that includes projects with a total potential generating capacity of 9.7 GW. This includes 5.7 GW in development projects and an additional 4 GW in secured leases. The combination of these two industry leaders is expected to create a powerhouse in offshore wind energy, capable of driving innovation and growth in the sector.
JERA Nex BP will be headquartered in London, with leadership roles designated for both companies. The CEO will be nominated by JERA, while BP will appoint the CFO. As the new venture takes shape, teams from both JERA and BP’s offshore wind divisions are expected to transition into the new company. The completion of this joint venture is anticipated by the end of the third quarter of 2025, marking a new chapter in the pursuit of sustainable energy solutions.
