BP-JERA JV Pulls Plug on US Offshore Wind Citing Unfavorable Market

The joint venture company formed between BP and JERA announced that it has decided not to proceed at this time with the development of its Beacon Wind project off the coast of Massachusetts. Calling it a “difficult decision,” the companies said they had determined to reduce activities in the United States to “a minimal level,” reporting they will close operating activities in the market and dismiss all staff team members.

“Unfortunately, in the present environment, we see no viable path to the development of our Beacon wind project and have concluded that we cannot continue our investment in the market,” the company said in a written statement. “The U.S. is a market with significant long-term potential for offshore wind, which we still believe can play a key role in the country’s energy transition.”

The joint venture company was announced last year and launched in August 2025. At the time, it said it would “seek to continuously prioritize and optimize its portfolio of projects based on value and will leverage access to external capital and competitive financing.” The initial focus was to develop the existing pipeline established between the two companies, as well as to operate their assets. JERA Nex BP said it had a total potential generating capacity worldwide of 13 GW, including around 1 GW installed, 7.5 GW in the development pipeline, and an additional 4.5 GW of secured leases.

The CEO of JERA Nex BP, Nathalie Oosterlinck, had said in August on the launch of the company that it had a strong operational portfolio and an extensive pipeline. They have a global portfolio of onshore and offshore wind as well as solar and batteries, but Beacon Wind was its only U.S. offshore wind project.

The lease for Beacon Wind, which is located 17 nautical miles southwest of Nantucket, Massachusetts, and 52 NM east of Montauk Point, New York, was originally awarded in a December 2018 auction with the lease effective in April 2019. It belonged to Equinor, which later entered into a joint venture with BP. That JV was dissolved at the end of 2023, with BP taking full control of the 128,000-acre lease.

The first phase of the project, which was to have 1,230 MW, had already obtained a 25-year offtake agreement with New York for its power. The Biden administration had completed the environmental review, but the approval of the Construction and Operation Plan was still pending. The plan envisioned a second phase with 1.2 GW at a later date.

Signs of doubts over the project appeared in February when the project withdrew its application with New York for the transmission system. The project had been hailed for the plan to creatively reuse the Astoria (New York) Power Complex. 

The Beacon Wind lease was awarded in the same auction as Vineyard Wind, which is under construction, and Mayflower Wind (now SouthCoast Wind), which is being developed in a partnership between EDP and ENGIE. This project is in court as it is one that the Trump administration has chosen to challenge the existing approvals.

JERA Nex BP said it would maintain the Beacon lease and “wait for a more favorable moment” to resume the project’s development.