bp and Energie Baden-Wuerttemberg AG (EnBW) of Germany were selected together as the preferred bidder for two major leases in the UK Offshore Wind Round 4, the first such UK leasing round since 2010, according to bp's statement on Monday.
"bp and EnBW intend to form a 50-50 joint venture to jointly develop and operate the leases," the statement read.
This marks bp's entry into the UK’s offshore wind power sector, currently the largest in the world, and according to bp is further progress towards the company rapidly building a world-class wind energy business.
bp said the projects are expected to "meet bp's 8-10% returns aim in "delivering attractive and stable returns and integrating with trading, mobility, and other opportunities."
The two leases are highly advantaged, with strong wind resources and proximity to shore that make them attractive investment opportunities.
Their near-shore location, around 30 kilometers off the coast of North West England and North Wales, will allow for lower cost, more reliable transmission infrastructure. Their shallow water depths of 35-40 meters are also expected to support efficient and cost-effective development.
In the statement, Bernard Looney, bp group chief executive, said that offshore wind is integral to delivering the UK’s green industrial revolution.
"Building on the UK’s strengths, the government’s 10-point plan aims to produce enough offshore wind to power every UK home, quadrupling output to 40 gigawatts by 2030 – and bp is delighted to play a part in this," he said.
By Gulsen Cagatay