JERA Nex BP halts US Beacon Wind Project as Costs Soar

JERA Nex BP is a joint venture of Japan's largest power generator JERA with BP. The company plans to stop development of the U.S. Beacon off-shore wind power project in the next few months and layoff its U.S. workers, according to a press release.

The decision is the latest blow to the U.S. Offshore Wind Industry, which has already been hurt by rising costs due to supply chain disruptions, inflation, and President Donald Trump's opposition against such projects.

JERA Nex BP stated that they did not see a viable way to develop the Beacon Project in the current market and concluded that they could no longer invest in this market. They also announced that their operating activities would be closed in the U.S.

It added that the company will keep the Beacon Lease Rights off the coasts of Massachusetts, and wait until a better time to restart development.

BP and JERA formed one of the largest offshore wind operators in the world as part of BP’s efforts to reduce their exposure to renewable energy.

The joint venture, which was officially established in August, has a portfolio that includes operating assets and projects for a total net potential generation capacity of 13 gigawatts. (Reporting and editing by Thomas Derpinghaus; Yuka Obayashi.)

(source: Reuters)