British multinational oil and gasoline firm BP is transferring into offshore wind for the primary time with a brand new strategic partnership with Equinor.

BP has entered into an settlement with Equinor to purchase 50 per cent non-operated pursuits within the Empire Wind and Beacon Wind belongings on the US east coast for a complete consideration earlier than changes of $ 1.1 billion.

Through this transaction, the 2 firms are additionally establishing a strategic partnership for additional progress inside offshore wind within the US, Equinor stated.

Currently, Equinor holds a 100 per cent curiosity in each the Empire Wind lease, situated off the coast of New York State, and the Beacon Wind lease, situated off the Massachusetts coast.

Equinor will stay the operator of the tasks in these leases by the event, building, and operations phases. It is anticipated that the wind farms might be equally staffed after a time period.

“We look ahead to working with BP who share our robust ambition to develop in renewable vitality. Our partnership underlines each firms’ robust dedication to speed up the vitality transition and mixing our strengths will allow us to develop a worthwhile offshore wind enterprise collectively within the US,” stated Equinor’s chief government officer Eldar Sætre.

Through this partnership, Equinor and BP will contemplate future joint alternatives within the US for each bottom-fixed and floating offshore wind and can leverage related experience to collectively develop scale.

BP’s acquisition of the pursuits in Empire Wind and Beacon Wind is anticipated to shut in early 2021, topic to customary situations together with buy worth changes and authority approval.

The settlement comes a month after BP introduced a brand new technique, which incorporates the intention to extend annual low carbon funding ten-fold to round $ 5 billion a 12 months by 2030. BP additionally goals to develop developed renewable producing capability from 2.5 GW in 2019 to round 50 GW by 2030.

“Offshore wind is rising at round 20% a 12 months globally and acknowledged as being a core a part of the world’s must restrict emissions. Equinor is a acknowledged sector chief and this partnership builds on a protracted historical past between our two firms. It will play a significant position in permitting us to ship our intention of quickly scaling up our renewable vitality capability, and in doing so assist ship the vitality the world needs and desires,” Bernard Looney, BP’s chief government officer, stated.

The Assets

Empire Wind is situated 15-30 miles southeast of Long Island and spans 80,000 acres. The lease was acquired in 2017 and is being developed in two phases with a possible whole put in capability of greater than 2 GW.

Beacon Wind is situated 60 miles east of Montauk Point and 20 miles south of Nantucket and covers 128,000 acres. Acquired in 2019, the lease has the potential to be developed with a complete capability of greater than 2.four GW.

The publish BP ventures into offshore wind with Equinor partnership appeared first on Offshore Energy.

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