Energy major BP and Japan’s largest utility JERA have agreed to combine their offshore wind businesses to form a new standalone, equally-owned joint venture.
The new global company, to be called JERA Nex BP, will become one of the largest global offshore wind developers, owners, and operators with a balanced mix of operating assets and development projects and a total of 13GW of potential net generating capacity.
The formation of JERA Nex BP is intended to accelerate development from the combined pipeline and bolster access to competitive financing. To support this, the partners have agreed to provide capital funding for investments committed to before the end of 2030 of up to $5.8bn.
The companies will contribute interests comprising operating assets with around 1GW net generating capacity, a pipeline of high-quality development projects with around 7.5GW capacity, and further secured leases with around 4.5GW of potential capacity.
Initially, the new company will focus on progressing existing projects in northwest Europe, Australia, and Japan.
“We are very pleased to have reached an 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,” said Murray Auchincloss, CEO of BP
“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,” added Yukio Kani, CEO of JERA.
JERA first entered the offshore wind market in 2019 through investments in projects in the UK and Taiwan. In 2023 it acquired Belgium’s offshore wind player Parkwind and later used this business as a platform to spin out a focused renewables vehicle JERA Nex.
BP has been building a portfolio in offshore wind since 2019, and now has a development pipeline with a total potential generating capacity of 9.7GW net – 5.7GW in development projects and a further 4GW in secured leases.
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 completion of this combination is expected by the end of the third quarter of 2025.
JERA owns and operates wind farms in Belgium, Germany, Japan, and Taiwan, including Northwester 2, Arcadis Ost 1, and Formosa 1 and 2, and has a development portfolio of projects in Japan, Ireland, and Australia. BP’s development projects are the Morgan and Mona projects in the UK Irish Sea, and Oceanbeat East and Oceanbeat West in Germany’s North Sea, with secured leases off Scotland and the east coast of the US.
