BP PLC (LSE:BP.) has unveiled a US$5.8 billion (£4.5 billion) deal with Japan’s Jera, which will see the oil giant’s paused offshore wind projects finished by the end of the decade.
BP and Jera will combine their offshore wind businesses into a new standalone venture, through which both will fund projects committed to before the end of 2030.
Initial focus will be placed on existing projects in Europe, Australia and Japan, with the tie-up set to form one of the world’s largest offshore wind developers.
BP had hit the brakes on its new offshore wind projects in the summer as part of a wider shift back towards fossil fuels under chief executive Murray Auchincloss.
Auchincloss noted the move would allow “a capital-light” model for shareholders in investing in renewable energy in a press release.
Overall, the business will boast 13 gigawatts of potential net generating capacity, including operating and pipeline projects, alongside secured leases.
“This will bring together BP and Jera's complementary businesses to create scale, with a mix of high-quality operating assets and development projects,” BP gas and low carbon vice president William Lin said.
“JERA Nex bp will be a major offshore wind player - developing the most competitive projects, continually high-grading its portfolio, investing with tight discipline, and securing optimal offtake arrangements.”
BP climbed 3% to 388.95p on Monday.