Bp and Equinor Restructure Ownership in US Offshore Wind Projects

bp and Equinor have jointly announced a strategic agreement to restructure the ownership of their shared US offshore wind projects. Upon completion, bp will acquire Equinor’s 50% stake in the Beacon Wind 1 and 2 projects, while Equinor will take ownership of bp’s 50% stake in the Empire Wind 1 and 2 projects. Additionally, bp will assume control of Equinor’s 50% interest in the Astoria Gateway for Renewable Energy (AGRE) site, and Equinor, subject to certain conditions, will gain ownership of bp’s 50% interest in the South Brooklyn Marine Terminal (SBMT).

Previously, both companies held equal stakes in the Beacon and Empire offshore wind projects. Under the new agreement, they will independently develop their wholly owned projects. The termination of the Offshore Wind Renewable Energy Certificate (OREC) Purchase and Sale Agreement for the Beacon Wind 1 project with the New York State Energy Research and Development Authority (NYSERDA) is also part of the arrangement.

Anja Isabel Dotzenrath, bp’s Executive Vice President of Gas & Low Carbon Energy, expressed their commitment to value creation across the offshore wind portfolio, focusing on growth opportunities in line with the company’s transformation. Beacon Wind 1 and 2 cover 128,000 acres in federal waters, with a combined potential capacity exceeding 2.5 gigawatts.

Joshua Weinstein, bp’s President of Offshore Wind Americas, highlighted the potential for job creation, community benefits, and the delivery of low-carbon energy. The proposed transaction, expected to be cash-neutral with customary working capital adjustments, may result in a pre-tax impairment charge of approximately $0.6 billion for bp’s US offshore wind assets in Q4 2023. The deal is subject to regulatory approvals and is anticipated to close around mid-2024. bp remains committed to the US offshore wind sector, actively seeking opportunities to expand its global portfolio.

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