British oil and gas company BP Plc is shifting to greener and cleaner energy as part of its long-term strategy to gradually move away from fossil fuels. The company announced Thursday it would spend $1.1 billion in the U.S. for a stake in the country's growing offshore wind power industry.
BP said in a statement it has reached an agreement with Equinor ASA for a stake in one of its green energy subsidiaries. Under the deal, BP has agreed to buy a 50% stake in Equinor's Empire Wind & Beacon Wind.
Empire Wind operates wind turbines located offshore of New York with a total area of 80,000 acres. Beacon Wind operates in offshore Massachusetts with a total area of 128,000 acres. Both companies have a combined installed capacity of 4.4 gigawatts - which is enough to power more than 2 million American households.
BP's chief executive officer Bernard Looney said in a statement that the partnership was an important early first step for the company and its goal to become an "integrated energy company." He added that offshore wind power was slowly becoming a popular option and its usage is growing each year.
The deal is the latest by BP as part of its previously announced strategic overhaul. Last month, the company said it planned to reach net-zero emissions by 2050. To achieve this BP plans to increase its annual green spending by up to $5 billion by 2030. BP said it plans to close the deal with Equinor early next year. The company hopes the acquisition will lead to further investments in the country's fast growing offshore wind industry.
Equinor's chief executive officer Eldar Saetre said in a separate statement the partnership with BP underscored both companies' commitment to accelerate the international transition to greener energy. Equinor is a pioneer in the offshore wind industry. The company built the world's first floating offshore wind farm in 2017 in Scotland. It has since built similar farms in the Baltic Sea and the U.S. east coast.
