bp and Equinor announced a restructure agreement of their joint US offshore wind projects which, following completion, will result in bp taking ownership of Equinor’s 50% stake in the Beacon Wind 1 and 2 projects and Equinor taking ownership of bp’s 50% stake in the Empire Wind 1 and 2 projects.
In addition to this, bp agreed to take ownership of Equinor’s 50% interest in the Astoria Gateway (AGRE) site, with Equinor agreeing to take ownership of bp’s 50% interest in South Brooklyn Marine Terminal (SBMT) subject to future conditions.
Under the new agreement, the company will work independently to develop their wholly owned projects, both previously holding a 50% stake in the Beacon and Empire offshore wind projects. 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.
“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” says Anja Isabel Dotzenrath, bp Executive Vice President, Gas & Low Carbon Energy.
Beacon Wind 1 and 2 comprise a combined area of 128,000 acres between Cape Cod, Massachusetts and Long Island, New York. The capacity of the projects combined is in excess of approximately 2.5GW, with the potential of delivery renewable energy to over 2 million consumers in the northeastern US.
The transaction is expected to be on a cash neutral basis, subject to customary working capital adjustments.
bp and Equinor remain committed to US offshore wind and will continue to seek development opportunities for their global portfolios.
For further information on the agreement, or offshore roles available in the US, please contact our US team on hello@lsprenewables.com
