BP is focussing more on Europe than the US for offshore wind because it believes there are better opportunities there to use electricity to produce green hydrogen and power its refineries, according to its interim CEO Murray Auchincloss.
The company is focused on “integration” of offshore wind, rather than solely on the power produced from it, he told analysts during the oil major’s third-quarter earnings call yesterday (31 October).
“As time has progressed, we focused much more on the integrated opportunities that we see in Europe, and that’s why you didn’t see us bid in many of the offshore wind rounds in the United States over the recent quarter,” he said.
BP agreed to pay €6.78 billion to secure the rights to build 4GW of offshore wind in the German North Sea earlier this year, and plans to use the electrons to help it scale up green hydrogen, biofuels production and electric vehicle charging, as well as to power its oil refineries.
Meanwhile, BP faces difficulties in US offshore wind after it and development partner Equinor’s request was rejected for an increase in the rates they would receive for a trio of projects off the north-east coast.
BP recorded a $540 million impairment yesterday on the three projects, and said it was assessing plans for future development.
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