BP (BP, Financial) and Japanese energy giant JERA have agreed to create an independent joint venture, JERA Nex bp, to combine their offshore wind power businesses. Each company will hold a 50% stake, with a potential generation capacity of 13 GW in operational and development projects. The companies plan to invest up to $5.8 billion by 2030, with BP contributing up to $3.25 billion and JERA up to $2.55 billion.
BP's CEO, Murray Auchincloss, aims to improve company performance amid concerns over its energy transition strategy. BP's stock has fallen 19% this year, while competitor Shell (SHEL) has seen a 1% rise. Auchincloss focuses on high-return oil and gas businesses, reducing low-carbon investments. JERA, formed by Tokyo Electric and Chubu Electric, entered the offshore wind sector in 2019, while BP joined the market the same year.
