BP Wins €6.8 Billion Contract to Build Two Wind Farms off the German Coast
BP will develop two offshore wind projects as its entry into Europe's offshore wind market. The North Sea sites, with a 4GW total potential generating capacity, will be located 130 and 150 km offshore at 40 m depths.
The development and construction are expected to be complete by 2030. With their inclusion BP's global offshore wind pipeline will total 9.2GW net.
The two offshore sites will be in service of BP's green hydrogen and biofuels production, electric mobility growth, and refinery and industry-wide decarbonization. The step fully aligns with their integrated energy company strategy and disciplined capital allocation framework.
“The renewable power we aim to produce will anchor the significant demand we expect for green electrons for our German operations," said Anja-Isabel Dotzenrath, BP’s executive vice president, gas and & low carbon energy.
The initial payments of €678 million (10% of the bid) will be paid by July 2024 with the remaining to be paid over a 20-year period after the project becomes operational. The expected return on investment is between 6-8%.
BP is a leading provider of EV fast charging, providing 1,500 charging points in Germany. It recently expanded its Hamburg office to further support low-carbon activities, including electric vehicle charging and offshore wind.
