BP has been awarded the rights to develop two offshore wind farms in the German bidding round, marking its entry into offshore wind power in continental Europe.
The two North Sea wind farms, located 130 km and 150 km offshore at sea depths of approximately 40 m, have a generating capacity of 4 GW. Subject to receiving the necessary permits and approvals, these would be BP’s first offshore wind projects in Germany and are fully aligned with the company’s integrated energy company strategy and disciplined capital allocation.
bp will lead the development, construction and operations of these fixed-bottom offshore wind projects, with grid connection expected by the end of 2030. bp’s global offshore wind pipeline now totals 9.2 GW net to bp
Anja-Isabel Dotzenrath, executive vice president of gas and low-carbon energy at bp, said: “The renewable energy we aim to produce will anchor the significant demand we expect for green electrons for our German operations, across a host of products and services. including the production of biofuels and green hydrogen, the growth of electric mobility and the decarbonisation of refineries”.
Initial payments totaling €678 million, equivalent to 10% of the offer amount, will be paid in July 2024. The remaining 90% will be paid over a 20-year period when the projects come online in the next decade.
bp country head Patrick Wendeler added: “We are investing massively in Germany’s energy transition and our own, from renewable energy generation to making an impact on decarbonising road transport and decarbonising our refineries. . Our existing core businesses here are being transformed, powered by green hydrogen, biofuels and offshore wind. And today’s victory accelerates the pace of change as we seek to do more. We look forward to the important role we can play in contributing to Germany’s energy transition and its efforts to become climate neutral by 2045.”
The recent tender supports Germany’s goal of having 30 GW of offshore wind projects installed by 2030, at least 40 GW by 2035 and at least 70 GW by 2045.
To date, bp has one offshore wind pipeline with potential generating capacity, with our joint venture partners, of up to 5.2 GW net to bp with projects under development off the US East Coast and in the United Kingdom in the Irish and North Seas. It also formed a partnership in Japan with Marubeni and, earlier this year, acquired a majority stake in a project pipeline of four potential projects in South Korea.