JERA Nex BP will buy EnBW’s stake in UK’s Mona offshore Wind project

JERA Nex BP has announced that it will purchase its partner EnBW’s stake in Mona 'offshore wind project. It also signed a lease agreement with the British 'facility.

This move follows a German utility EnBW's announcement that it would be taking a 1.2 billion-euro ($1.39-billion) impairment charge for pulling out of two wind projects, Mona and Morgan, which it had been developing?jointly? with JERA Nex BP. The decision was a direct implication of the UK losing a landmark offshore tender. EnBW also cited significant increases in supply-chain costs, lower electricity market prices and increased interest rates.

JERA Nex BP is a joint venture between oil giant BP and Japan’s largest power generator JERA. They have also signed a leasing agreement with Britain’s Crown Estate for the Mona Project, which can deliver up to 1,5 gigawatts once operational.

The offshore wind company has said that it will not lease the Morgan project in the current market conditions.

JERA Nex BP & EnBW?said that they would work with stakeholders to manage?the implications of 'the decision & conclude remaining project activities.

JERA Nex BP has not disclosed financial details about the transactions. (1 dollar = 0.8624 euro) (Reporting and editing by Sahal Muhammad in Bengaluru)

(source: Reuters)