Currently Equinor holds a 100% interest in both projects. The transaction is in line with Equinor’s renewable strategy to access attractive acreage early and at scale, mature projects, and capture value by de-risking high equity ownership positions. Equinor will remain the operator of the projects in these leases through the development, construction and operations phases and it is anticipated that the wind farms will be equally staffed after a period of time.

“We look forward to working with BP who share our strong ambition to grow in renewable energy. Our partnership underlines both companies’ strong commitment to accelerate the energy transition and combining our strengths will enable us to grow a profitable offshore wind business together in the U.S.,” says chief executive officer in Equinor, Eldar Sætre.

“This transaction with BP demonstrates Equinor’s ability to create value from developing offshore wind projects. Over the past decade Equinor has built world-class technical expertise in offshore wind. This has enabled us to access and high-grade wind acreage, resulting in a material, high-quality project pipeline. Optimising equity and bringing in new partners allow us to realise value, increasing our financial flexibility to fund further growth,” says executive vice president for New Energy Solutions in Equinor, Pål Eitrheim.

Through this partnership Equinor and BP will consider future joint opportunities in the US for both bottom-fixed and floating offshore wind and will leverage relevant expertise to jointly grow scale. As the partnership develops, both companies hope to expand this cooperation further in a market that is forecast to grow to between 600 and 800 GW globally by 2050.

BP’s acquisition of the interests in Empire Wind and Beacon Wind has an effective date of 1 January 2020 and is expected to close in early 2021, subject to customary conditions including purchase price adjustments and authority approval.