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JERA Nex BP has decided to pause the U.S. Beacon offshore wind project and lay off its American staff, citing rising costs, supply chain challenges, inflation, and regulatory hurdles. While the company will retain lease rights off Massachusetts, it sees no immediate path to further investment. Formed in August after a December agreement between JERA and BP, the joint venture manages assets and development projects with 13 gigawatts potential. The decision underscores ongoing difficulties in the U.S. offshore wind sector, including cost pressures and policy uncertainties.
JERA Nex BP, a joint venture between Japan's leading power generator JERA and BP, has announced it will halt development of the U.S. Beacon offshore wind project and plans to lay off its U.S. employees in the coming months. The company stated that rising costs, supply chain disruptions, inflation, and regulatory hurdles have made the project financially unviable under current conditions. Advertisement
The firm noted that it does not see a viable path to continue investing in the Beacon project and has decided to close its U.S. operations. However, it will retain the lease rights off the coast of Massachusetts and monitor market conditions, waiting for a more favourable moment to resume development.
The joint venture was formed following an agreement reached in December between JERA and BP, aiming to create one of the world's largest offshore wind operators. It was formally established in August, combining a portfolio of operating assets and development projects with a total net potential generating capacity of 13 gigawatts. The venture also aligns with BP's broader strategy to reduce exposure to renewables while maintaining a presence in the offshore wind sector.
The announcement reflects ongoing challenges for the U.S. offshore wind industry, which has faced repeated obstacles due to rising project costs, logistical difficulties, and changing policy support. Experts note that these developments highlight the need for careful cost management and stronger regulatory frameworks to support large-scale renewable energy projects.
Source Reuters
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