BP’s joint venture, JERA Nex bp, announced on January 16 that it would acquire EnBW’s 50 % stake in the Mona offshore wind project and signed a lease agreement for the facility. The transaction gives JERA Nex bp full control of the 1.5 GW project, which is located in the east Irish Sea and is a key element of the United Kingdom’s strategy to reach net‑zero emissions by 2050.
The deal was valued at €1.2 billion (approximately $1.39 billion), the same amount EnBW will record as an impairment charge in its 2025 annual report. The transaction reflects EnBW’s decision to exit the project after failing to secure Contracts for Difference (CfDs) in the UK’s latest tender round, a move that also stemmed from rising supply‑chain costs, higher interest rates and increased implementation risks.
BP’s broader strategy has recently shifted toward a “reset” that prioritizes oil and gas while trimming renewable investments by more than $5 billion per year. The acquisition demonstrates BP’s selective approach to high‑value renewable projects, allowing the company to maintain a foothold in the UK offshore wind market without committing to large‑scale development costs.
Mona’s 1.5 GW capacity will contribute significantly to the UK’s goal of deploying 50 GW of offshore wind by 2030. The project’s location and scale position it to generate substantial renewable generation for the national grid, supporting the country’s net‑zero targets.
JERA Nex bp has decided not to proceed with the sister project, Morgan, citing current market conditions and high development costs. The decision underscores the financial challenges facing offshore wind developers in the UK after the recent CfD allocation round yielded no bids for new projects.
The transaction highlights the broader headwinds in the offshore wind sector. EnBW’s exit and the associated impairment charge illustrate the impact of policy uncertainty and cost inflation, while BP’s continued investment signals confidence in the long‑term value of mature projects that can deliver stable returns.
BP’s CEO, Murray Auchincloss, has publicly acknowledged that the company “has gone too far, too fast” in its transition away from fossil fuels. He emphasized a disciplined, value‑driven focus on projects with clear profitability, a stance that aligns with the acquisition of Mona and the selective scaling of the company’s renewable portfolio.
Overall, the acquisition strengthens BP’s position in the UK’s growing offshore wind market, provides a strategic asset that aligns with national net‑zero ambitions, and reflects the company’s broader shift toward a more focused, high‑value investment strategy.
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