bp to enter German offshore wind market

bp to enter German offshore wind market

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 130 kilometres (km) and 150 km offshore in water depths of about 40m, have a  total potential generating capacity of 4 gigawatts (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.

bp will lead the development, construction and operations of these fixed-bottom offshore wind  projects, with grid connection targeted by the end of 2030. bp’s global offshore wind pipeline now totals up to  9.2 GW net to bp. 

“These  awards are a huge milestone for bp’s decarbonisation plans in Germany and are a strong reflection of  our wider strategy. 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  decarbonisation,” said Anja-Isabel Dotzenrath, bp’s executive vice president, gas and & low carbon energy.  

“Germany is a core market for bp and we are excited to continue and grow our  business here. The investment is fully aligned with our integrated energy strategy and is accommodated within our disciplined capital frame. Expected returns of 6-8% are consistent with our renewables and power growth engine on an unlevered basis, with the potential to realise enhanced  value through integration across the Germany value chain.”

Initial payments totalling EUR678 million (USD755 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 and its predecessor companies have been operating in Germany for nearly 120 years and today it  employs about 4,000 people in the country. bp operates two refineries in the country and Aral, Germany’s leading retail network with about 2,300 sites. It is also a leading provider for electric vehicle (EV) fast-charging,  providing 1,500 charging points in Germany.

Its main German offices are in Bochum and it recently expanded its Hamburg office to support its low-carbon activities, including offshore wind and electric vehicle charging. bp has extensive low carbon  hydrogen plans in the country. Earlier this year, bp unveiled Europe’s first charging corridor for heavy-duty  electric trucks.

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