bp and JERA form global offshore wind joint venture

bp and JERA Co., Inc. have teamed up to create a new equally-owned joint venture aimed at boosting development of offshore wind globally.

The business will be called JERA Nex bp with a 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. Supporting this, the partners have agreed to provide capital funding of up to $5.8 billion for investments committed to before end of 2030.

The companies will contribute interests comprising operating assets with around 1GW net generating capacity, a strong pipeline of development projects with around 7.5GW capacity, and further secured leases with around 4.5GW of potential capacity.

JERA Nex bp will initially focus on progressing existing projects in North-West Europe, Australia and Japan, and will continue to mature the development pipeline of significant longer-term opportunities.

Yukio Kani, CEO of JERA 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.”

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William Lin, bp executive vice president for gas & low carbon energy, added: “Building on our successful cooperation over many years, this will bring together bp and JERA's complementary businesses to create scale, with a mix of high-quality operating assets and development projects. JERA Nex bp will be a major offshore wind player developing the most competitive projects, continually high-grading its portfolio, investing with tight discipline, and securing optimal offtake arrangements. We look forward to expanding our partnership with JERA through this exciting opportunity.”

JERA Nex bp is expected to benefit from the existing relationships and partnerships that the two shareholders have worldwide, including across the supply chain. The business will also draw on and benefit from the global trading capabilities of both partners to manage and market power from its assets into various offtake channels.

JERA Nex bp will be based in London. Its CEO will be nominated by JERA and the CFO by bp. On completion, offshore wind teams from both JERA and JERA Nex and staff from bp’s offshore wind business will be expected to move into the new business.

The parties have agreed to work to complete formation of JERA Nex bp, subject to regulatory and other approvals, with completion expected by end of the third quarter of 2025.

bp and JERA, and its shareholders Tokyo Electric Power Company (TEPCO) and Chubu Electric Power, have a very long history of partnership, both historically in LNG and more recently in pursuing possibilities for cooperation in solar, hydrogen and low carbon fuels.