BP, the oil giant that announced a seismic strategy shift last month, made its first venture into offshore wind power with a $1.1 billion purchase of U.S. assets from Norway’s Equinor ASA. The deal marks the start of an offshore-wind investment partnership in the region for the two companies, which have been at the forefront of the rapid changes in the oil industry as companies seek to adapt to the realities of climate change. BP has taken the boldest steps so far in abandoning the oil-super major business model. Just six months after taking the helm.
BP will receive a 50% stake in the Empire Wind and Beacon Wind developments off New York and Massachusetts, respectively, the companies said in two separate statements on Thursday. Equinor will retain 50% in both, and continue to be the operator. Empire Wind, whose first phase could start in 2024-25, has a potential installed capacity of more than 2 gigawatts, and Beacon Wind more than 2.4 gigawatts. Together they’ll be able to power more than 2 million homes. Equinor earlier estimated total investments in Empire Wind’s first phase at about $3 billion.