BP enters $1.1 billion offshore wind partnership with Equinor

BP has agreed to acquire a 50% non-operated interest in the Empire Wind and Beacon Wind assets on the US east coast from Equinor for $1.1 billion.

Equinor, which currently holds 100% interest in both projects, will remain operator through the development, construction, and operations phases. It is anticipated that the wind farms will be equally staffed after a period of time.

Empire Wind, 15-30 miles southeast of Long Island, NY, spans 80,000 acres with water depths of 65-131 ft. The lease was acquired in 2017 and is being developed in two phases with a potential total installed capacity of more than 2 Gw.

Beacon Wind, 60 miles east of Montauk Point and 20 miles south of Nantucket, Mass., covers 128,000 acres. The lease was acquired in 2019 and has the potential to be developed with a total capacity of more than 2.4 Gw.

The turbines used at each site are each expected to have an installed capacity of more than 10 Mw.

Power generation from each site will be enough to power more than 1 million homes. 

The companies will consider future joint opportunities in the US for both bottom-fixed and floating offshore wind—a market that is forecast to grow to 600-800 Gw globally by 2050.

The deal, subject to customary conditions including purchase price adjustments and authority approval, is expected to close in early 2021 with an effective date of Jan. 1, 2020.