BP Halts US Offshore Wind Project Amid Political and Economic Turmoil

BP and its Japanese partner Jera have announced a halt to the Beacon Wind offshore project off the coast of Massachusetts, effectively withdrawing from the US offshore wind sector for the foreseeable future. The decision, which will see all US-based staff for the Jera Nex BP joint venture made redundant, underscores intensifying political headwinds for renewables under President Trump’s administration, as well as challenging market dynamics.

The Beacon Wind project had aimed to provide power to over a million American homes. However, its development was only in the early stages, with permits and approvals still outstanding. Earlier this year, BP had already returned its network connection agreement while assessing the project’s viability, before passing ownership to the joint venture with Jera in August.

BP’s exit from the US offshore wind market marks a significant pivot back to its oil and gas core after several bruising setbacks in renewables. The oil major wrote off £900 million from its US offshore wind investments in 2023, dissolved its partnership with Equinor, and transferred full control of the Empire Wind project to the Norwegian group. Equinor weathered considerable regulatory turmoil, as the Trump administration imposed stop-work orders on key developments—measures which rattled investor confidence and forced Orsted into a costly rights issue to shore up capital.

The public statement from the Jera Nex BP joint venture pointed to the US’s current political climate as a major barrier to renewable development, stating there is “no viable path” for the Beacon project at present. The company has opted to retain its lease rights, hinting at an intention to return should market and regulatory conditions improve.

Analysts view the move as part of BP’s broader retreat from its brief green energy push. Under former chief executive Bernard Looney, BP promised to reduce oil and gas output by 40 per cent this decade, pivoting to renewables. That ambition proved unpopular with shareholders and was eventually reversed under current boss Murray Auchincloss, who has refocused BP’s strategy on expanding hydrocarbon production.

Challenges facing the wind sector stretch beyond US politics. Inflationary pressures, supply chain disruptions, and broader macroeconomic uncertainty have affected offshore wind projects across Europe and Asia. For now, BP’s renewables ambitions in the US are firmly on ice, with the company signalling it will await more favourable winds before re-entering the market.