bp and JERA plan to combine their offshore wind businesses into a new standalone 50:50 joint venture (JV).

The new entity, to be named JERA Nex bp, will have mix of operating assets and projects under development with a potential total 13 GW net generating capacity.

Through this JV, the partners will seek to accelerate development of their combined projects and strengthen access to financing. In support, they have agreed to provide capital funding of up to $5.8 billion for investments committed to before year-end 2030.

JERA Nex’s operating assets will have a net generating capacity of about 1 GW, development projects with 7.5 GW capacity, and secured leases with a further 4.5 GW of potential capacity.

Initially the focus will be on progressing existing projects in northwest Europe, Australia and Japan.

bp and JERA expect to benefit from their existing relationships and partnerships worldwide, including the supply chain. The business will also harness the partners’ global trading capabilities to manage and market power from its assets.

JERA’s shareholders are Tokyo Electric Power Company (TEPCO) and Chubu Electric Power. It first entered the offshore wind market in 2019 by investing in projects in the UK and Taiwan. Last year it acquired Belgium offshore wind investor, Parkwind.

JERA Nex currently owns and operates wind farms in Belgium, Germany, Japan and Taiwan with developments in Japan, Ireland, and Australia.  

bp has amassed an offshore wind portfolio since 2019. Its development pipeline includes the Morgan and Mona offshore wind projects in the UK Irish Sea, and Oceanbeat East and Oceanbeat West in the Germany North Sea.

It also has leases offshore Scotland and the US east coast.

JERA Nex bp will be based in London. Upon completion of the combination, targeted by the end of third-quarter 2025, the co-venturers’ offshore wind teams will likely move to the new business. 

bp’s existing interests in offshore wind partnerships in South Korea will not be included.