bp enters German offshore wind market with 4GW auction win
(WO) – bp has been awarded the rights to develop two offshore wind projects in the German tender round, marking its entry into offshore wind in continental Europe.
The two North Sea sites, located 130km and 150km offshore in water depths of about 40m, have a total potential generating capacity of 4GW. 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 targeted by end 2030. bp’s global offshore wind pipeline now totals up to 9.2GW net to bp.
Anja-Isabel Dotzenrath, bp’s executive vice president, gas and & low carbon energy, said, “The renewable power we aim to produce will anchor the significant demand we expect for green electrons for our German operations, from a whole host of products and services including green hydrogen and biofuels production, electric mobility growth and refinery decarbonization.”
Initial payments totaling €678 million, equivalent to 10% of the bid amount, will be paid by July 2024. The remaining 90% will be paid over a 20-year period when the projects become operational in the next decade.
bp’s head of country, Patrick Wendeler, added, “We are investing massively in Germany’s energy transition and in our own – from renewable power generation to having an impact on the decarbonization of road transport to the decarbonization of our refineries. Our major existing businesses here are transforming – powered by green hydrogen, biofuels and offshore wind. And today’s win accelerates the pace of change as we look 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 in 2045.”
The recent tender supports Germany’s target of having 30GW of offshore wind projects installed by 2030, at least 40GW by 2035 and at least 70GW by 2045.
To date, bp has an offshore wind pipeline with a potential generating capacity, with our joint venture partners, of up to 5.2GW net to bp with projects under development off the US east coast and in the UK in the Irish and North Seas. It has also formed a partnership in Japan with Marubeni and earlier this year acquired a majority stake in a project portfolio of four potential projects in South Korea.
