A. I. Dotzenrath, bp executive vice president, gas & low carbon energy said:
- we remain disciplined with an uncompromised focus on value creation across our entire offshore wind portfolio as we continue to pursue growth opportunities that underpin our company’s transformation.
Under the new agreement, the companies will work independently to develop their wholly owned projects.
The pair have also agreed with the New York State Energy Research and Development Authority (NYSERDA) to terminate the Offshore Wind Renewable Energy Certificate (OREC) Purchase and Sale Agreement for the Beacon Wind 1 project.
The agreement aims to help each company optimize their development strategies, strengthen their positions in the US offshore wind market and continue supporting the energy transition.
A. I. Dotzenrath said:
- over the past few years, we have built a highly experienced offshore wind team with deep capabilities and a sizeable global project portfolio with scale positions in the most attractive basins;
- we remain disciplined with an uncompromised focus on value creation across our entire offshore wind portfolio as we continue to pursue growth opportunities that underpin our company’s transformation.
The combined potential generative capacity of the projects is in excess of approximately 2.5 gigawatts which has the potential to deliver renewable energy to over 2 million consumers in the northeastern US.
J. Weinstein, bp’s president of offshore wind Americas added:
- Beacon Wind 1 and 2 have immense potential to create American jobs, benefit local communities, deliver low carbon energy and support the energy transition;
- bp has a proven track record of delivering complex engineering projects offshore, and we’ll continue bringing that expertise to bear as we advance the development, engage with communities and bring these projects closer to commercial operations.
Following assessment of fair value of bp’s assets, bp expects to recognize a pre-tax impairment charge of around $0.6 billion relating to bp’s US offshore wind assets in the fourth quarter 2023.
bp remains committed to US offshore wind and will continue to seek opportunities to build on its global portfolio.Subject to regulatory approvals, the transaction is currently anticipated to close around mid-2024.