BP signs $1.1 billion deal with Norway’s Equinor and moves into offshore wind farming for the very first time
Oil giant BP today entered the offshore wind market for the first time after signing a $1.1 billion deal with Norway’s Equinor.
The move sees BP take two stakes in projects in the US as the company moves towards its ambitious net zero target by 2050 under chief executive Bernard Looney.
The deal with Equinor makes BP the co-owner of the Empire Wind project off New York, as well as Beacon Wind off Massachusetts.
Looney said: “This is an important early step in the delivery of our new strategy and our pivot to truly becoming an integrated energy company.
“Offshore wind is growing at around 20% a year globally and is recognised as being a core part of meeting the world’s need to limit emissions.
“It will play a vital role in allowing us to deliver our aim of rapidly scaling up our renewable energy capacity, and in doing so help deliver the energy the world wants and needs.”
BP already owns onshore wind businesses in the US but the move into offshore shows Looney’s commitment to turning BP away from traditional oil and gas exploration.
But some analysts argue that renewable projects – in particular wind farms – do not offer the same return as oil and gas developments.