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Equinor has reached an agreement with BP to sell 50 percent of the shares of Empire Wind and Beacon Wind on the East Coast of the United States for a total price before adjustments of 1.1 billion dollars, equivalent to ten billion crowns. , according to a statement on Thursday.
At the same time, the two oil giants are establishing a strategic partnership for further growth of offshore wind power in the United States.
– We look forward to collaborating with BP, which shares our ambition for strong growth in renewable energy. The association emphasizes the desire of both companies to accelerate the energy transition. By combining our strengths, together we will be able to develop a profitable offshore wind business in the US, says CEO Eldar Sætre in a statement.
Former Equinor CEO Helge Lund is chairman of the BP board.
Continue as operator
Today, Equinor has a 100 percent interest in both the Empire Wind license, located off the coast of New York State, and the Beacon Wind license, located off the coast of Massachusetts.
Equinor will continue as operator of both projects in the development, construction and operation phases. The offshore wind farms will eventually receive the same staff from both companies, it is claimed.
– The transaction with BP shows our ability to create value through the development of offshore wind projects. Over the past ten years, Equinor has developed a leading experience in offshore wind energy. We have secured access to attractive offshore wind areas and have developed a significant portfolio of projects. By optimizing ownership interests and onboarding new partners, we can realize value and increase financial flexibility to fund further growth, says Pål Eitrheim, Executive Vice President of New Energy Solutions at Equinor.
Low-carbon investments should multiply by ten
With Helge Lund from Norway on the board, BP has moved in a quite different direction than it did a few years ago. First, the British oil company has drastically lowered its long-term oil price estimates. Second, it has presented some of the most ambitious climate targets among European oil companies. By 2030, the company, among other things:
- Ten times your low carbon investments.
- Reduce production by 40 percent.
- Reduce the so-called carbon intensity of the products you sell by more than 15 percent.
Furthermore, the company has agreed not to start exploring in new countries.
– Energy markets are fundamentally changing and shifting towards low carbon emissions, driven by societal expectations, technology and shifting consumer preferences, said Chairman of the Board Helge Lund when they were introduced plans just over a month ago.
Now the focus is on the wind in America.
Expand collaboration
As the partnership develops, the two companies hope to further expand their collaboration in a global market that is expected to grow by 600-800 gigawatts (GW) worldwide by 2050.
Equinor has previously announced renewables growth ambitions of four to six GW by 2026 and from 12 to 16 GW by 2035, as well as indicating expectations of an acceleration of these ambitions. Equinor is building significant positions in its core areas for offshore wind, the North Sea, the US and the Baltic Sea, while the company is working on growth opportunities in other selected markets for wind power. floating and fixed marine in the background, “states the report.
BP’s acquisition of interests in Empire Wind and Beacon Wind will take effect on January 1, 2020 and is expected to be completed in early 2021, provided that the general conditions, including ordinary price adjustments and the approval of the authorities.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases via a link, which leads directly to our pages. Copying or other use of all or part of the content may only be done with written permission or as permitted by law. For more terms, see here.
