JERA Nex BP halts US Beacon Wind Project as Costs Soar

JERA Nex BP is a joint venture formed by Japan's largest power generator JERA, and BP. It plans to halt the development of the U.S. Beacon off-shore wind power project, and layoff its U.S. workers in the next few months, 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 believe the Beacon Project could be developed in the current climate and would therefore close their operations in the United States.

The project's potential generating power is 2.6 gigawatts. This would be enough to supply electricity to over 1,000,000 homes in the Northeastern United States.

It added that the company would retain Beacon's lease rights and wait until a better time to restart development.

BP and JERA formed a joint venture in December to create one of the largest offshore wind operators in the world. The creation of the company reflects BP's decision to abandon offshore wind in order to focus on oil and gas, which have a higher return.

The London-based joint venture was officially established in August. It pooled assets from the United States, Belgium Germany Japan Taiwan Britain Ireland Australia and other countries. Its net potential generating power was 13 GW when it was formed. Reporting by Yuka Obaashi. Stephanie Kelly contributed additional reporting. Thomas Derpinghaus, Mark Potter and Stephanie Kelly edited the article.

(source: Reuters)