Chockalingam Kasi’s Post

bp has acknowledged a significant shift in its strategy toward U.S. offshore #windenergy, with a write-down of $1.1 billion in its offshore wind business, marking a retreat from ambitious plans set in 2020 for a clean energy transition. This move coincides with BP's decision to end its partnership with Equinor on three offshore wind projects, selling its stake in two and holding onto the Beacon Wind project without immediate development plans. Despite initial enthusiasm for offshore wind as a key element of its net-zero emissions goal by 2050, BP is now refocusing on oil and gas production, which is expected to increase by 2 to 3 percent annually through 2027, alongside integrating offshore wind with other renewable ventures to boost profitability. This recalibration comes amid criticisms of the U.S. offshore wind market and a broader strategy to pursue more integrated and potentially lucrative energy models, diverging from reliance on power purchase agreements. BP's CEO Murray Auchincloss emphasized a pragmatic approach, aiming to transition from an international oil company to an integrated energy company while meeting current market demands for oil and gas. https://lnkd.in/gXHTcJtX

For this week's #PGE301 post, I will discuss the effects of BP's split from Equinor and BP's increased interest in investing in oil and gas. Recently, BP split from Equinor, an energy company from Norway, with which BP had shared 3 offshore wind projects. During the split, BP sold two of the projects that it had stake in, writing down the value of its offshore wind-based units by over $1 billion. However, BP did maintain some interest in the wind energy business, since it bought the Beacon Wind project after its split with Equinor. This purchase allowed for BP to further its commitment to its goal of net-zero emission by 2050. At the same time, there has been an increased demand of energy over the recent years, and the comparatively high output of oil and gas resources relative to their clean energy counterparts has caused BP to focus more on oil and gas resources. The company hopes to increase its oil and gas production by 2 to 3 percent a year till 2027 in order to meet the increasing demand for energy.

Shell has put in great effort to move into electricity and is putting in equal effort to move out of it again, be it renewables or supply... Apart from wondering how much value was just destroyed in fees and friction, what's the long-term plan here and will they flip-flop again when rates and oil are low?

Equinor's Bold Move in Offshore Wind 🌊 While many European energy giants are slowing down offshore wind investments — and getting rewarded by the stock market — Equinor is taking a different approach. They’ve just acquired a 10% stake in offshore wind leader Ørsted, doubling down on offshore wind at a time when the ROI for offshore wind is being questioned. Will Equinor’s bold strategy pay off, or will the market push back? Either way, they’re sending a strong signal about the future of energy transition. ⚡ #EnergyTransition #Renewables #OffshoreWind #Equinor #Sustainability #OilandGas #EnergyInvesting

Empire Energy Offshore Congratulates Iberdrola on Securing 791 MW New England Wind 1 Project through its U.S. subsidiary Avangrid—for winning a major 791 MW contract to develop the New England Wind 1 offshore wind farm. This project is another step forwad for renewable energy in the U.S. and a powerful leap forward for offshore wind on the East Coast. Set to provide clean, emission-free energy to 400,000 homes, New England Wind 1 will play a key role in driving the energy transition while slashing greenhouse gas emissions equivalent to removing 300,000 gasoline-based cars from the road annually. As part of the project, Iberdrola will also invest $3 billion into the region’s economy, creating more than 4,400 full-time jobs and sparking the development of key infrastructure like a world-class marshalling port in Salem and a new offshore wind manufacturing hub in New Bedford, Massachusetts. “Offshore wind is at the heart of America’s energy future,” said Mike M., Senior Director of Offshore at Empire Energy Offshore. “Iberdrola’s New England Wind 1 contract is a testament to the critical role the U.S. is playing in the global offshore wind revolution—and we’re proud to stand alongside industry leaders who are pushing forward these landmark developments.” This monumental project will begin construction in 2025 and aims to reach full commercial operation by 2029, driving job creation, bolstering local economies, and supporting Massachusetts’ climate goals. Positioned next to Vineyard Wind 1—the nation’s first large-scale offshore wind farm—New England Wind 1 further cements the region’s status as a national leader in renewable energy. As the U.S. offshore wind sector expands, we at Empire Energy Offshore are excited to witness the transformation and stand ready to support the clean energy transition that will power future generations. #OffshoreWind #CleanEnergy #NewEnglandWind1 #Iberdrola #Avangrid #EmpireEnergyOffshore #Renewables #EnergyTransition #GreenEconomy https://lnkd.in/eWd8eMb2

RWE was one of the shrinking number of global #offshorewind giants yet to make its mark in #Australia's burgeoning market - that's now changed WORLD FORUM OFFSHORE WIND (WFO) International Renewable Energy Agency (IRENA) Asia Wind Energy Association #renewableenergy #windpower

China has become a significant investor and operator of renewable energy projects in Scotland, especially in offshore wind. Red Rock Power, a unit of SDIC Power, a state-controlled energy company based in Beijing, owns 25 per cent of the entity that has since 2019 operated the Beatrice wind farm off Caithness (SSE Renewables owns 40 per cent). Beatrice is one of the largest ever private investments in Scottish infrastructure (at £2.6 billion) and one of Scotland's single largest sources of renewable energy. Now, some of China leading companies in the wind turbine business - including Mingyang Smart Energy - are eyeing opportunities in the offshore wind supply chain in Scotland. But as I write in this The Scotsman column, issues of energy security and trade competitiveness may start to encroach. #China #Scotland #renewables #offshorewind https://lnkd.in/eA6zGD-A

A really helpful summary outlining BP’s net zero shift. When might we see one of the majors divest their renewables businesses? Or is this one step too far. Thanks Justin Hoffman

https://lnkd.in/gm3M47bU I was expecting major oil&gas companies (BP, Total, shell, etc.) to become the largest renewable energy producers in coming decades. They have finanical strength to continue long term investment into offshore wind esepecially while they are making huge and stable profits from fossil fuel. Maybe governments and global societies need to come up with plans to incentivise these high emitters to invest more on renewable energy projects...

bp Assumes Complete Ownership of Beacon Wind Offshore Projects in the US, Transfers Empire Wind Stake to Equinor Reading Time: 2 minutesbp and Equinor have reached an agreement to restructure their joint US offshore wind projects. bp will take over Equinor’s stake in Beacon Wind 1 and 2, while Equinor will take over bp’s stake in Empire Wind 1 and 2. Additionally, bp will acquire Equinor’s interest in the Astoria Gateway for Renewable Energy (AGRE) site, and Equinor will potentially take over bp’s interest in the South Brooklyn Marine Terminal (SBMT), subject to certain conditions. In the past, bp and Equinor jointly owned 50% of the Beacon and Empire offshore wind projects. Now, they’ll independently develop their own […] - https://lnkd.in/dRZAeHdV #windenergy #windturbines #offshorewind #windturbine #cleanenergy #climatechange #sustainability #energynews #smartenergy #windfarm #windindustry #renewableenergy #renewables #bp #equinor #northamerica #offshorewind #renewableenergy #usa #windturbines