BP, JERA Raise Stake in 2 Belgian Offshore Wind Farms
JERA Nex bp, the 50:50 offshore wind joint venture of Japan's JERA Co Inc and Britain's BP PLC, has completed the purchase of Sumitomo Corp's stakes in two Belgian offshore wind facilities with a combined capacity of 384 megawatts (MW).
JERA Nex bp increased its ownership in Northwester 2 to 100 percent and Nobelwind to 80.1 percent by acquiring 30 percent and 39.02 percent respectively from Tokyo-based Sumitomo, JERA Nex bp said in a press release.
Commissioned 2020, Northwester 2 generates up to 219 MW. Commissioned 2017 as phase 2 of the Belwind farm, Nobelwind has a capacity of 165 MW, according to the company.
"The transaction reflects JERA Nex bp’s strategy to build a resilient offshore wind business focused on competitive assets in attractive markets where the company can create value as a long-term owner and operator", JERA Nex bp said.
"As we build JERA Nex bp, our focus is on disciplined investment and growth", said JERA Nex bp chief investment officer Zlati Christov. "This transaction strengthens our position in an attractive portfolio of assets that we operate and know very well. Belgium has been central to our offshore wind journey for more than a decade, and we remain committed to safely and reliably delivering renewable energy through these projects for years to come".
Early this year JERA Nex bp acquired co-venturer EnBW Energie Baden-Württemberg AG's (EnBW) stake in the Mona wind project in United Kingdom waters, while the partners dropped the Morgan offshore wind project.
Planned to rise in the Irish Sea, the two projects were to install three gigawatts (GW). Only up to half of that would be pursued after the German utility's exit, according to separate statements by the companies January 16.
EnBW said it no longer wanted to proceed with Mona and Morgan after the projects failed to win government support through contracts for difference.
An earlier EnBW statement said that besides the failed bids, other factors that rendered the projects "no longer economically viable as per EnBW's standards" included "significant cost increases across the supply chain, higher interest rates and ongoing project implementation risks".
Concurrently JERA Nex bp signed a lease agreement with The Crown Estate for Mona, bringing the project nearer to a final investment decision.
"Amid current market conditions, JERA Nex bp has decided not to proceed with the Agreement for Lease for the Morgan offshore wind project", it said. "JERA Nex bp and EnBW will work with stakeholders to manage the implications of this decision and conclude project activities carefully and respectfully".
A third UK wind project between EnBW and JERA Nex bp, the 3-GW Morven offshore Scotland, remains in the works, EnBW said at the time.
BP and JERA announced JERA Nex bp in 2024 with about one GW of net installed generating capacity, a 7.5-GW development pipeline and 4.5 GW of secured leases.
However, JERA Nex bp last year indefinitely shelved the proposed Beacon Wind project in the United States.
"JERA Nex bp has taken the difficult decision to reduce our activities in the U.S. to a minimal level and will close our operating activities in the market", JERA Nex bp said.
"Unfortunately, as a result of this, all team members will leave the company in the coming months.
"The U.S. is a market with significant long-term potential for offshore wind, which we still believe can play a key role in the country's energy transition. Unfortunately, in the present environment we see no viable path to the development of our Beacon wind project and have concluded that we cannot continue our investment in the market.
"For now, we will continue to maintain the Beacon lease and wait for a more favorable moment to resume project development".
Beacon Wind has a planned capacity of 2.5 GW, enough to power about one million homes across the northeastern U.S., according to the owners.
To contact the author, email jov.onsat@rigzone.com
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