Bp Has Made Its First Foray into Offshore Wind in the US With A $1.1bn Investment

London, Sept. 10 (Bloomberg) -- British oil giant BP announced a major strategic shift in August, buying the U.S. assets of Norwegian energy giant EquinorASA for $1.1 billion, making its first foray into offshore wind power.

The deal marks the beginning of the two companies' offshore wind investment partnership in North America. The two oil companies have been at the forefront of the industry's rapid changes as they seek to adapt to the realities of climate change.

Bp has taken its boldest move yet to abandon the business model of an oil giant. Bernard Rooney, BP's chief executive, said in August that the company would cut oil and gas production by 40 per cent over the next decade and spend $5bn a year to build one of the world's largest renewable energy companies.

Bp will acquire a 50 percent stake in Equinor's Empire and Beacon wind developments off the coasts of New York and Massachusetts, the two companies said in separate statements Thursday. Equinor will retain a 50 per cent stake in both wind projects and remain the operator.

The Empire wind power project, which could be launched in 2024-2025, has a potential capacity of more than 2GW, while the Beacon wind power project has a potential capacity of more than 2.4GW. These two wind projects will be able to power more than two million homes. Equinor had previously estimated the Empire wind project's total investment in the first phase at about $3bn.