Equinor and BP have agreed to revise the ownership of their joint offshore wind projects in the US, namely Empire Wind and Beacon Wind, in which the firms presently hold a stake of 50% each.

According to the terms of the agreement, Equinor will acquire BP’s stake in the Empire Wind 1 and 2 offshore wind projects to gain full ownership. Likewise, BP will acquire Equinor’s stake in the Beacon Wind 1 and 2 offshore wind projects for 100% ownership.

Besides, Equinor has agreed to acquire BP’s 50% interest in the South Brooklyn Marine Terminal (SBMT) lease, subject to certain future conditions. BP, on the other hand, will acquire Equinor’s 50% interest in the Astoria Gateway for Renewable Energy (AGRE) site.

The agreement is intended to assist each company in streamlinin their development strategies, enhancing their positions in the US offshore wind market, and sustaining their commitment to the energy transition.

Equinor renewables Americas senior vice president Molly Morris said: “Empire Wind 1 is ready to deliver on New York’s climate and energy goals, with numerous permits and supplier contracts secured.

“The strong commitment by the state to develop this industry is reflected in the NY4 rapid rebid offering, providing an opportunity to improve value creation for the project.”

The Empire Wind offshore wind projects are being developed in two phases, namely Empire Wind 1 and Empire Wind 2. Empire Wind 1 will have a potential capacity of 810MW, while the second phase will have a capacity of more than 1.2GW.

The Beacon Wind project is planned to be built on 128,000 acres in federal waters about 96.6km east of Montauk Point and 32.2km south of Nantucket. It will be developed in two phases.

Beacon Wind 1, the first phase, will have a generation capacity of 1.23GW while the second phase, Beacon Wind 2 has a potential capacity of 1.36GW.

BP offshore wind Americas president Joshua Weinstein said: “Beacon Wind 1 and 2 have immense potential to create American jobs, benefit local communities, deliver low carbon energy and support the energy transition.”

Under the new agreement, both parties will work independently to develop their 100% owned projects. The transaction, subject to regulatory approvals, is anticipated to be completed around mid-2024.

Equinor and BP have also reached an agreement with the New York State Energy Research and Development Authority (NYSERDA) to scrap their offshore wind renewable energy certificate (OREC) purchase and sale agreement for the Beacon Wind 1 project.

Earlier this month, Equinor and BP agreed to terminate their OREC with the NYSERDA for the Empire Wind 2 offshore wind project.