LONDON (Reuters) - BP signed a $1.1 billion deal with Norway’s Equinor on Thursday for a 50% stake in two U.S. offshore wind developments.
Analysts say the offshore wind sector provides a good route to scale for oil companies, which have recently announced lofty renewable power capacity targets as they try to curb dependence on fossil fuels and reach their climate goals.
Below is a round-up of other deals this year by European oil majors in the sector, in alphabetical order:
Equinor and Japan’s Jera and Electric Power Development Co (J-Power) formed a consortium to jointly submit a bid for offshore wind power projects in Akita, northern Japan.
Shell and Dutch energy firm Eneco won a joint tender for a 750 megawatt (MW) Dutch offshore wind project to be built by 2023.
French energy group Total and Macquarie’s Green Investment Group entered a partnership to develop five large floating offshore wind projects in South Korea..
The projects have a potential joint capacity of around 2.3 gigawatts (GW), and Total and Macquarie aim to start construction of the first project of around 500 MW by the end of 2023. No financial details were revealed.
Total this year also acquired a 51% stake in SSE’s Seagreen 1 British offshore wind farm project.
Total paid 70 million pounds ($91 million) upfront, with earn-outs up to 60 million pounds in aggregate, subject to performance. The 1,075 MW project should be completed in 2022-2023.
($1 = 0.7681 pounds)
Reporting by Susanna Twidale; Editing by Mark Potter
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