Zinger Key Points
- BP and JERA Co., Inc. will merge their offshore wind businesses into JERA Nex bp, committing $5.8 billion by 2030.
- The joint venture, with 13 GW potential capacity, focuses on global offshore wind development, leveraging shared expertise.
- Get New Picks of the Market's Top Stocks
BP plc. BP shares are trading higher premarket on Monday. The company and JERA Co., Inc. agreed to merge their offshore wind businesses.
The partners have committed up to $5.8 billion in capital funding for investments made before the end of 2030.
The move will create a new, equally-owned joint venture that will become one of the largest global offshore wind developers, owners, and operators.
The merger will form JERA Nex bp, a global business with a balanced portfolio of operating assets and development projects, totaling 13 GW of potential net generating capacity.
The creation of JERA Nex bp aims to accelerate development from the combined pipeline and enhance access to competitive financing.
JERA Nex bp will focus on value-driven development of competitive projects and optimizing its extensive portfolio.
Initially, it will prioritize advancing existing projects in North-West Europe, Australia, and Japan, while continuing to develop significant long-term opportunities.
The companies will contribute operating assets with approximately 1 GW of net generating capacity, a strong pipeline of high-quality development projects totaling around 7.5 GW, and secured leases with about 4.5 GW of potential capacity.
The parties have agreed to complete the formation of JERA Nex bp, pending regulatory and other approvals, with the process expected to be finalized by the end of the third quarter of 2025.
Murray Auchincloss, BP CEO said, "This will be a very strong vehicle to grow into an electrifying world, while maintaining a capital-light model for our shareholders."
William Lin, bp executive vice president for gas & low carbon energy, added, "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."
Investors can gain exposure to BP via Amplify ETF Trust Amplify Natural Resources Dividend Income ETF NDIV.
Price Action: BP shares are up 4.2% at $28.70 premarket at the last check Monday.
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