BP Cuts Offshore Wind Spending Plans in Tie-Up With Jera
- Companies to invest up to $5.8 billion on entity through 2030
- Offshore wind has struggled as costs soared in recent years
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BP Plc and Jera Co., Japan’s biggest electricity producer, will merge their offshore wind businesses as the British oil major seeks to cut its exposure to the troubled green power sector.
The new company — JERA Nex bp — will be funded with as much as $5.8 billion through 2030, a downgrade on BP’s previous investment plans in the technology. It comes as BP limits exposure to the high costs of renewable power while seeking to reassure investors who are more interested in the stronger returns from the company’s core fossil-fuels business.