BP enters Continental Europe’s offshore wind sector with two German projects
BP has been granted the rights to develop two offshore wind projects in the German tender round, which marks the British multinational oil and gas company’s entrance into the offshore wind sector in continental Europe.
Located 130km and 150km offshore in the North Sea, with water depths of around 40m, these sites have a combined potential generating capacity of 4GW. Pending necessary permits and approvals, these will be bp’s inaugural offshore wind projects in Germany, aligning with the company’s integrated energy company strategy and disciplined capital allocation.
bp will oversee the development, construction, and operations of these fixed-bottom offshore wind projects, with a target grid connection by the end of 2030. These projects will increase bp’s global offshore wind pipeline to up to 9.2GW net to bp.
Anja-Isabel Dotzenrath, bp’s executive vice president of gas & low carbon energy, stated, “These awards are a huge milestone for bp’s decarbonization 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 decarbonization.”
Initial payments amounting to €678m, equivalent to 10% of the bid amount, are due by July 2024. The remaining 90% will be paid over a 20-year period when the projects become operational in the next decade.
bp has a longstanding presence in Germany, with nearly 120 years of operations and approximately 4,000 employees in the country. The company manages two refineries and Aral, Germany’s leading retail network with around 2,300 sites. It is also a key provider of EV fast-charging, offering 1,500 charging points in the country.
Patrick Wendeler, bp’s head of country, Germany, 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.”
The recent tender aligns with Germany’s target of installing 30GW of offshore wind projects by 2030, at least 40GW by 2035, and at least 70GW by 2045. To date, in partnership with joint venture partners, bp’s offshore wind pipeline has a potential generating capacity 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.