Oil major BP has signed a deal worth $1.1 billion with Equinor, a Norwegian petroleum company to foray into the offshore wind market, media reports said. It is reported that BP plans to acquire offshore wind assets of Equinor in the US.
The move by BP indicates its strategy to reinvent itself as an integrated energy company from an international oil company. The company has committed to cut down oil and gas production by 40 percent by 2030.
As part of the agreement, BP will acquire 50 percent in Equinor’s Empire Wind, New York City and Beacon Wind assets off Long Island and offshore Massachusetts. However, Equinor will remain operator of the sites.
Equinor’s CEO Eldar Saetre, told the media, “We look forward to working with BP who share our strong ambition to grow in renewable energy. Our partnership underlines both companies’ strong commitment to accelerate the energy transition and combining our strengths will enable us to grow a profitable offshore wind business together in the US.”
2 gigawatts (GW) capacity will be installed in Empire Wind offshore and the Beacon Wind offshore Massachusetts has the capacity to hold 2.4 GW of energy. The development expects to provide clean energy to more than 1 million homes across the US.
The strategic partnership will pave the way for BP and Equinor to explore future offshore wind opportunities in the US.
Equinor is also looking to expand its presence across the world as it seeks to become a broader energy company.