Equinor, bp: US offshore wind divorce

Developers Equinor and bp have decided to dissolve their US offshore wind joint venture and part ways with equitable split of development rights.

The pair was previously jointly pursuing the development of four offshore projects in US waters - Empire Offshore Wind and Beacon Offshore - but have this week decided to split up the assets to deliver them under sole ownership.

Equinor will assume 100% rights to Empire Offshore Wind development – made up to 816MW Empire Wind 1 and 1.3GW Empire Wind 2 – by acquiring bp's 50% stake in the duo.

bp, in turn, will get 100% ownership of Beacon Offshore – made up of 1.2GW Beacon Wind 1 and 1.4GW Beacon Wind 2 – with Equinor relinquishing its 50% rights in the pair.

The swap will be carried out in a "cash neutral transaction", except for standard settlements of cash and working capital.

The separation is intended to provide both developers "flexibility to pursue their respective priorities under their corporate strategies".

bp executive vice president, Anja Isabel Dotzenrath, added: "We remain disciplined with an uncompromised focus on value creation across our entire offshore wind portfolio as we continue to pursue growth opportunities that underpin our company's transformation."

Subject to regulatory approvals, the swap is set to be finalised in H1 [2024].

Equinor as a sole owner, yesterday [25 January 2024], submitted proposals for Empire Wind 1 under New York's fourth offshore wind solicitation round.

bp, on the other hand, agreed with the New York State Energy Research and Development Authority to terminate the Offshore Wind Renewable Energy Certificate Purchase and Sale Agreement for the Beacon Wind 1 project.

Equinor is set to use project finance debt to fund the Empire duo and is aiming to make final investment decision on Empire Wind 1 in "mid 2024" subject to positive result in the NY4 solicitation.