BP and JERA have announced a joint venture (JV) to merge their offshore wind businesses, creating JERA Nex bp, a new standalone entity with a potential net generating capacity of 13GW.
In line with this, partners have committed up to $5.8bn in capital funding for investments planned through the end of this decade.
The equally owned JV aims to become a leading offshore wind developer, owner, and operator, combining operating assets and development projects to accelerate growth and secure competitive financing.
JERA Nex bp will incorporate 1GW of operating assets, 7.5GW of development projects, and additional secured leases with 4.5GW of potential capacity.
The JV will initially focus on advancing projects in North-West Europe, Japan, and Australia while maturing its longer-term development pipeline.
Both partners have agreed on a funding framework to sustain development through revenues from assets, access to competitive financing, and proceeds from portfolio management activities, including asset farm-downs and sales.
JERA Nex bp is expected to optimise its extensive portfolio, leveraging the global trading and supply chain networks of BP and JERA.
JERA and BP and are said to bring extensive experience to the JV, with JERA entering the offshore wind market in 2019 and expanding its portfolio through acquisitions such as Belgium-based Parkwind.
BP has developed an offshore wind pipeline with a net generating capacity of 9.7GW, including projects in the UK, Germany, and the US. This partnership builds on their long-standing collaboration in liquefied natural gas (LNG) and renewable energy initiatives.
BP CEO Murray Auchincloss 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.”
Based in London, the new JV’s CEO will be nominated by JERA, while BP will appoint the chief financial officer.
Staff from both companies’ offshore wind teams will transition to the new venture. Completion of the JV is expected by Q3 2025, subject to regulatory approvals.
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.”
