JERA Nex BP Acquires EnBW's Share in UK's Mona Offshore Wind Project

JERA Nex BP's Acquisition of EnBW Stake

Jan 16 (Reuters) - JERA Nex BP will buy its partner EnBW's stake in the Mona offshore wind project and has signed a lease agreement for the British facility, it said on Friday.

The move comes a day after German utility EnBW said it would take a 1.2 billion euro ($1.39 billion) impairment charge after pulling out of two wind projects it was developing jointly with JERA Nex BP — Mona and Morgan — a direct consequence of losing out in a landmark UK offshore tender. EnBW also cited a significant rise in supply chain costs, weaker electricity market prices and higher interest rates.

JERA Nex BP, jointly owned by oil major BP and Japan's top power generator JERA, has also signed a lease agreement with Britain's Crown Estate for the Mona project, which could deliver up to 1.5 gigawatt once operational.

Market Conditions and Project Implications

But the offshore wind company said it will not proceed with the Morgan project lease in current market conditions.

Financial Details of the Transaction

JERA Nex BP and EnBW said they will work with stakeholders to manage the implications of the decision and conclude remaining project activities.

JERA Nex BP did not disclose financial details of the transactions.

($1 = 0.8624 euros)

(Reporting by Pooja Menon in Bengaluru; Editing by Sahal Muhammed)