Energy giant BP will invest $1.1 billion for assets in offshore wind power with its recent deal with Equinor.
London-based energy company BP announced intentions to invest in offshore wind power. On Thursday, the petroleum giant said it will shell out $1.1 billion to get a 50 percent stake in Equinor’s offshore wind projects in the US.
Investments for Offshore Wind Power
Last week, the British oil company BP announced that it would take half ownership of the wind assets from the Norwegian firm Equinor. Such projects include the Empire Wind in New York and Beacon Wind in Massachusetts.
BP makes its first venture into offshore wind power with a $1.1 billion purchase of U.S. assets from Norway’s Equinor https://t.co/iOxc5WwEpO
— Bloomberg (@business) September 10, 2020
In a statement on Thursday, the two companies said that the deal formed “a new strategic partnership” for wind project developments. They both said it also includes “existing offshore wind leases on the US East coast.”
The partnership could enable both companies to provide energy for over 2 million homes in the US, per CNN Business.
BP + Equinor
The agreement still maintains Equinor as the operator of the projects. Moreover, the remaining half of the stakes still belong to the state-owned Norweigan energy firm.
In addition, the companies expect the deal to be completed by early next year. Equinor chief Eldar Sætre stated that the partnership “underlines both companies’ strong commitment” to fast-track energy transition.
“Combining our strengths will enable us to grow profitable offshore wind business together in the US,” Sætre added.
BP’s Efforts to Go Green
BP previously said that it intends to aim for zero carbon emissions by 2050. So far, BP has investments on onshore wind projects only. Moreover, the British energy firm plans to further increase its annual investments in low-carbon projects.
According to BP’s chief executive officer, Bernard Looney, the agreement serves as a significant step “to truly becoming an integrated energy company.” In August, Looney also revealed that BP plans to reduce oil and gas production by 40 percent in the next decade.
He added that the offshore wind rises by about 20 percent around the world annually. Looney also remarked that many recognize offshore wind power as “a core part of the world’s need to limit emissions.”
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