BP plc (BP) and Japanese power utility JERA announced plans to merge their offshore wind businesses, forming a 50-50 joint venture called JERA Nex BP. The partnership is set to invest up to $5.8 billion by 2030 to advance the development of offshore wind projects globally. BP and JERA will contribute up to $3.25 billion and $2.55 billion, respectively.
The newly formed company will focus on developing existing assets in northwest Europe, Australia and Japan, while also pursuing new competitive projects in other markets. With a combined capacity of up to 13 gigawatts (GW), the partnership reflects BP CEO Murray Auchincloss's strategic pivot to optimize capital allocation by reducing emphasis on renewables.
Once operational, JERA Nex bp will rank among the world’s top five offshore wind operators, trailing leaders like Orsted, Iberdrola and RWE. The JV will integrate around 1 GW of generating capacity from current assets and a project pipeline of 7.5 GW, alongside leases for another 4.5 GW.
JERA, which entered the offshore wind business in 2019, has a global portfolio spanning Europe, Asia and Australia. The JV will be headquartered in London, with the leadership position shared by both companies.
BP plans to divest its U.S. onshore wind business and reduce its solar exposure by selling a stake in Lightsource BP. Additionally, the company has paused investments in new offshore wind projects while maintaining a "capital-light" approach for shareholders.
The deal is expected to be closed by the third quarter of 2025, marking a pivotal moment for BP as it navigates the challenges of transitioning to cleaner energy while ensuring shareholder returns. Meanwhile, JERA CEO Yukio Kani highlighted the partnership's strategic benefits, noting the importance of achieving scale, diversifying its portfolio and enhancing capabilities, with BP as an ideal collaborator.
As BP recalibrates its renewable energy ambitions, this JV highlights a broader industry trend of balancing energy transition goals with financial pragmatism.
BP’s Zacks Rank & Key Picks
BP currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked stocks like TechnipFMC plc FTI, FuelCell Energy FCEL and Nine Energy Service NINE, each presently carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
TechnipFMC is a leading manufacturer and supplier of products, services and fully integrated technology solutions for the energy industry, with a focus on the subsea segment in offshore basins worldwide. FTI’s growing backlog ensures strong revenue visibility and supports margin improvements.
FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.
Nine Energy Service provides onshore completion and production services for unconventional oil and gas resource development. The company operates across key prolific basins in the United States, including the Permian, Eagle Ford, MidCon, Barnett, Bakken, Rockies, Marcellus and Utica, as well as throughout Canada. With a sustained demand for oil and gas in the future, the demand for NINE’s services is anticipated to increase, which should position the company for growth in the long run.
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