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Japanese energy provider and British oil company BP are to set up a company named JERA Nex bp in the U.K. by next September after they gain approval from authorities. They intend to invest $5.8bn in the 50-50 venture by 2030. Both have been struggling to achieve profitability in offshore wind due to rising costs. Presumably it is hoped that the larger scale of the merged business will help to find economies. The new company will be the fourth largest industry player in terms of the amount of offshore wind power capacity, including those under development. https://lnkd.in/e5qsKU_v

ICYMI: Shell announces the cessation of new offshore wind projects, focusing on maximizing existing assets and a strategic alliance with Equinor. This decision reflects a shift toward #hydrocarbons and more selective investments. L’article Shell ends new offshore wind projects to refocus its #energystrategy est apparu en premier sur energynews.

Equinor, a major player in renewable energy, appears to be shifting gears on its offshore wind strategy: 📍 Exiting Spain, Portugal, and Vietnam 💰 Rising costs and economic pressures driving decisions 🎯 Still aiming for 12-16 GW renewable capacity by 2030, but prioritizing profitability 🏗️ Focusing on key projects in UK (Dogger Bank), US (Empire Wind), and Poland (Bałtyk 2 & Bałtyk 3) 🌞 Onshore wind and solar looking more attractive What does this mean for the industry? 🔍 It highlights the challenges facing offshore wind: inflation, high interest rates, and supply chain issues 🔄 We might see a rebalancing between offshore and onshore renewables 🛢️ Oil & gas still play a significant role (Equinor plans $6.7B/year investment in Norwegian offshore oil) What are your thoughts on Equinor's strategy and its implications across the broader energy sector? #OffshoreWind #RenewableEnergy #EnergyTransition #Equinor #CleanEnergy #cSolutions Read the full story from Offshore magazine: https://lnkd.in/dx8t9cqK

🌊 Riding the Wave of Change! 🌊 Offshore wind giants and oil majors BP, Equinor, Shell Energy and TotalEnergies are unveiling ambitious plans, fuelled by the plummeting levelised cost of electricity (LCOE) from €150/MWh in 2015 to less than €50/MWh in 2024! 📉 G8 Energy, with a strategic focus on advanced engineering and proprietary technologies, is all set to ride this wave of expansion, contributing to the global surge in offshore wind capacity. 🚀 🔗 𝗥𝗲𝗮𝗱 𝗺𝗼𝗿𝗲: https://buff.ly/3x6q9GC 🔗 𝗙𝗶𝗻𝗱 𝗼𝘂𝘁 𝗺𝗼𝗿𝗲: buff.ly/3LYl9FN #G8Energy #WindPro #OffshoreWindLeaders #CleanEnergyFuture

Major developments in offshore wind! 🌊 bp and JERA Co., Inc. have just announced an exciting new venture. They are combining their offshore wind businesses and assets to create JERA Nex bp, a standalone joint venture that will be a key player in the global offshore wind industry. JERA Nex bp will boast an impressive 13GW potential net generating capacity, featuring a mix of operating assets and development projects. The aim is to speed up development from the combined pipeline and enhance access to competitive financing, with the partners agreeing to provide up to $5.8 billion in capital funding for investments before the end of 2030.✔️ This new entity will focus on developing high-quality projects and optimizing its extensive combined portfolio, particularly in North-West Europe, Australia, and Japan. The companies will contribute operating assets with around 1GW capacity, development projects with 7.5GW, and additional secured leases with 4.5GW potential capacity. A significant step forward towards a greener future! 🌍 The parties have agreed to work to complete formation of JERA Nex bp, subject to regulatory and other approvals, with completion expected by end of the third quarter of 2025. #RenewableEnergy #OffshoreWind #GreenFuture

Shell Exits Carbon Offset Market: A Pivot for Strategic Shift. Shell is signaling a strategic shift by selling some of its carbon projects portfolio as the carbon offset market faces challenges. The strategic move aligns with the CEO, Wael Sawan’s focus on fossil fuel energy that provides higher returns. Although the company once aimed for significant growth with these low-carbon projects, it now wants to shift away from operations that don’t provide a strategic advantage and premium returns, such as offshore wind energy projects. #shell #carbonoffset #energy #crudeoil https://lnkd.in/gfA7ebYd

🚨 Exciting Offshore Wind Partnership Announcement 🌊💡 BP and JERA have announced a groundbreaking 50-50 joint venture, JERA Nex bp, aiming to invest up to USD 5.8 billion in offshore wind projects. This strategic partnership targets an impressive 13 GW of generation capacity by 2030, combining both companies' offshore wind assets and expertise. 🗺️ The venture will focus on advancing projects in North-West Europe, Australia, and Japan, with 1 GW of operating assets and a pipeline of projects totaling 7.5 GW in development. This collaboration sets a strong foundation for the global expansion of offshore wind. 💼 The new company will be headquartered in London, with JERA nominating the CEO and BP nominating the CFO. The joint venture is expected to be completed by Q3 2025. 🌱 This partnership comes at a critical moment for the offshore wind sector, amidst a challenging investment climate. However, the combined resources of BP and JERA position the venture to drive transformative growth in renewable energy. 🔋 Offshore wind plays a crucial role in the transition to a cleaner, more sustainable energy future. Let’s watch how JERA Nex bp shapes the industry! #OffshoreWind #RenewableEnergy #Sustainability #Partnership #EnergyTransition #BP #JERA #CleanEnergy

🌬️ Expanding our offshore wind horizons! TotalEnergies has signed an agreement with RWE to acquire a 50% stake in two offshore wind projects in the North Sea: N-9.1 and N-9.2, each with a 2 GW capacity. 📍 Located 110 km off the German coast, these projects are a key part of our commitment to growing renewable energy solutions in Europe. 👉 This acquisition builds on our existing offshore wind concessions, including N-12.1, N-11.2, and O-2.2, enabling us to leverage synergies from our 6.5 GW German offshore wind hub. 🏗️ With optimized construction and operation costs, we’re positioned to contribute to decarbonizing Germany’s electricity and industrial sectors. 🇩🇪⚡ The projects are set to be commissioned in 2031 and 2032, with preliminary studies already underway. Learn more here: https://lnkd.in/e4q9A8bn #TotalEnergies #OffshoreWind #RenewableEnergy #Partnership #Germany #NorthSeaWind

Shell’s Strategic Shift: What It Means for the Future of Energy Shell’s recent decision to scale back offshore wind investments and split its power division marks a pivotal moment in the energy sector. As the company pivots toward profitability, this move raises critical questions about the balance between short-term financial gains and long-term commitments to the energy transition. Key Implications for the Industry: -Challenges for Offshore Wind: Rising costs, fierce competition, and long payback periods are squeezing margins, pushing companies like Shell to rethink investments. -Opportunities for Smaller Players: Shell’s withdrawal creates space for renewables-focused firms and regional energy players to step up. -Risks for Oil Majors: While focusing on profitability may please shareholders, scaling back renewables could mean losing leadership in the low-carbon economy. -The Need for Support: Governments and private investors must bridge the gap to ensure offshore wind remains a cornerstone of global decarbonization efforts. Shell’s move underscores the ongoing tension between profitability and sustainability in the energy sector. The question now is: Will others follow, or will this open the door for bold players to lead in renewables? #hydrocarbons #energy #renewables #trends #shift #policies #tensions

🌍 $1.9mn/MW Deal Multiple in Spain! Does Northland Power's Targeted Deal Valuation for 15-year old Onshore Wind Assets Align with Comparable Precedents? Yes, it does. Here's a detailed overview: Northland Power Inc. Power potential sale comprises a 559 MW portfolio, predominantly consisting of onshore wind assets. These assets have been operational for over 15 years and are either contracted under Spain’s regulated remuneration schemes (average remaining contract period of 5 years) or are operating in the merchant market. To validate this valuation, we can look at two of EDPR's similar onshore wind sales in Spain from the Enerdatics M&A database: – 257 MW portfolio (operational life of 14 years) to Verbund in Jul'23, at $1.9mn/MW – 181 MW portfolio (operational life of 12 years) to China Three Gorges in Nov'21, at $1.9mn/MW These transactions illustrate that Northland Power’s anticipated valuation aligns with current market trends, confirming consistency with observed benchmarks. #RenewableEnergy #WindEnergy #GreenEnergy #SustainableInvesting #MergersAndAcquisitions #MarketTrends #EnergyValuation #OnshoreWind #NorthlandPower #SpainRenewables #NorthlandPower #EDPR #Verbund #EnergyMarket #CleanEnergy #RenewableAssets #EnergyTransition