bp Alternative Energy Investments Limited (BPAEIL) and Marubeni have inked cooperation and participation agreements to build offshore wind projects and explore decarbonization initiatives, including hydrogen. As part of their relationship, the two companies will form a joint venture to pursue offshore wind business prospects in Japan. The joint venture will be 49 per cent owned by BPAEIL.
The deal is still subject to merger control approval, but it is expected to be finalised eventually. Furthermore, Marubeni claims to be one of the first developers to participate in the Fukushima Floating Offshore Wind Farm Project demonstration. It has also worked on large-scale offshore wind farm projects in the Japanese ports of Akita and Noshiro. Marubeni has a stake in power projects in 21 countries with a combined capacity of approximately 12 GW.
In accordance with its most recent agreement, bp is expected to establish an offshore wind development team in Japan, where it has been doing business since 1960. The corporation has a presence in the country, where it trades oil and natural gas (LNG) and distributes Castrol lubricants. bp has a net offshore wind development pipeline of more than 5 GW, which includes projects in the US and the UK. The company’s renewable project pipeline has expanded to more than 24 GW since 2019. It has also already met its 20 GW renewable power development target for 2025.
REGlobal’s Views: Marubeni already has a presence in the Japanese wind offshore wind market and bp is present in Japan’s oil and gas space since the 1960s. Thus, the two companies are well placed to work together in the offshore wind and hydrogen spaces in the fast growing Japanese market.
