Finance
JERA Nex BP halts development of US Beacon wind project as costs soar
Published by Global Banking and Finance Review
Posted on October 22, 2025
2 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on October 22, 2025
2 min readLast updated: January 21, 2026
JERA Nex BP halts the US Beacon wind project due to soaring costs, impacting the offshore wind industry. The project had a potential capacity of 2.6 GW.
TOKYO (Reuters) -JERA Nex BP, a joint venture between Japan's top power generator JERA and BP, plans to halt development of the U.S. Beacon offshore wind power project and lay off its U.S. employees in the coming months, the venture said in a statement.
The decision marks the latest setback for the U.S. offshore wind industry, which has been hit by soaring costs from supply chain disruption, inflation and the impact of U.S. President Donald Trump's opposition to such projects.
JERA Nex BP said it did not see a viable path to develop the Beacon project in the current environment and that it would close its operating activities in the United States.
The potential generating capacity of the project was 2.6 gigawatts, enough to power over 1 million homes in the northeastern United States.
The company will retain the Beacon lease rights off the coast of Massachusetts and wait for a more favourable time to resume development, it added.
BP and JERA agreed in December to form one of the world's largest offshore wind operators. Its creation reflected BP's retreat from offshore wind to spend more on higher-return oil and gas operations.
The joint venture, headquartered in London, was formally established in August and pooled a mix of operating assets and development projects in the United States, Belgium, Germany, Japan, Taiwan, Britain, Ireland and Australia. When it formed, its net potential generating capacity was 13 GW.
(Reporting by Yuka Obayashi. Additional reporting by Stephanie Kelly. Editing by Thomas Derpinghaus and Mark Potter)
Offshore wind power refers to the generation of electricity using wind turbines located in bodies of water, typically oceans or large lakes. It harnesses wind energy to produce clean, renewable electricity.
A joint venture is a business arrangement where two or more parties agree to pool their resources for a specific project or business activity, sharing profits, losses, and control.
Generating capacity is the maximum output that a power plant can produce under specific conditions. It is typically measured in megawatts (MW) or gigawatts (GW).
Supply chain disruption occurs when there are unexpected changes or interruptions in the supply chain process, affecting the production and delivery of goods and services.
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