With 11 days until Climate Week NYC, bp has announced a new strategic partnership with Equinor to develop major offshore wind assets in the fast-growing US market and to jointly pursue further offshore wind opportunities in the country.
Today’s announcement marks bp’s first venture into offshore wind – a clean energy source which is forecast to grow six-fold globally in the next 10 years, according to BloombergNEF.
The move comes a month after bp announced a new strategy, which includes the ambitious aim to increase annual low carbon investment 10-fold to around $5 billion a year by 2030. And grow developed renewable generating capacity from 2.5 gigawatts (GW) in 2019 to around 50GW by 2030.
The potential in the offshore wind market is huge, according to executive vice president for gas and low carbon energy, Dev Sanyal, who struck the deal worth $1.1 billion with Equinor.
Estimates suggest the offshore wind sector is forecast to grow from ~30GW today to ~190GW by 2030, the fastest growth rate of all renewable energy sectors, according to BloombergNEF.
With wind an abundant resource, aided by a supportive regulatory environment and rapid cost reductions, offshore wind looks set to rocket.
And the US is pioneering in the offshore wind space, looking to develop 30GW by 2030. In fact, American Wind Energy Association analysis found that developing 30GW of offshore wind could support up to 83,000 jobs and deliver $25 billion annually in economic output by 2030.
Bernard Looney, chief executive officer
The strategic partnership includes the development of existing offshore wind licence interests on the US East Coast and to jointly pursue further opportunities for offshore wind in the US.
Dev Sanyal, executive vice president of bp gas and low carbon energy