bp boosts renewable energy production and efficiency with technology upgrades at Indiana wind farm

Rhea-AI Summary

BP (NYSE: BP) completes a major technology upgrade at its Fowler Ridge 1 wind farm in northwest Indiana, deploying new Vestas turbines expected to generate up to 40% more energy, enough to power around 27,000 homes. The project involves upgrading 40 turbines, with a capital investment of around $100 million. bp plans to recycle the decommissioned blades, keeping up to 3.3 million pounds of material from ending up in landfills.

Positive

• The technology upgrade is a substantial investment in bp's low-carbon energy future, contributing to a more secure, affordable, and lower carbon energy mix. The project meets bp's expected returns for renewables. The new Vestas turbines are estimated to generate an average of 314,000 kilowatt-hours each year, producing power more efficiently at lower wind speeds.

Negative

• The negative impact on stock performance is uncertain without specific financial data on the expected returns for renewables or the potential cost savings from the technology upgrade.

• Upgraded wind turbines at Fowler Ridge 1 could generate up to 40% more energy
  
  
• The project extends the life of the facility and increases production by deploying a newer, more efficient and reliable technology
  
  
• bp plans to recycle the decommissioned blades, keeping millions of pounds of materials out of landfills

HOUSTON, Nov. 20, 2023 /PRNewswire/ -- bp (NYSE: BP) has completed a major technology upgrade at its Fowler Ridge 1 wind farm in northwest Indiana that will enable the site to produce more power, more efficiently and with greater reliability.

The new Vestas turbines are expected to produce up to 40% more energy. They are estimated to generate an average of 314,000 kilowatt-hours each year, enough renewable electricity to potentially power around 27,000 homes. The new technology produces power more efficiently at lower wind speeds, creating more electricity from available wind resource.

"This project is a substantial upgrade for the wind farm and another investment in bp's low-carbon energy future," said Orlando Alvarez, chairman and president, bp America. "It shows bp's strategy in action – contributing to a more secure, affordable and lower carbon energy mix while pursuing our net zero ambition."  

The project involved upgrading 40 turbines, including the installation of 120 individual blades and 40 new nacelles, which house power generation equipment and transformers atop the wind towers. bp's capital investment was around $100 million. The project meets bp's expected returns for renewables.

"We're excited to partner with bp as a leading multibrand service provider, supplying new, industry-leading technology for the Fowler Ridge 1 wind project," said Ramit Bajaj, senior vice president of construction & operations for Vestas North America. "Repowering wind projects offers an optimal solution for ageing fleets by increasing the annual energy production and expanding the lifespan of a project – a critical component of the clean energy transition."

bp plans to recycle the decommissioned blades, keeping up to 3.3 million pounds of material from ending up in landfills. The decommissioned blades are planned to be shredded and blended with raw materials to make cement products.

Onshore wind is critical to bp's renewables & power business, one of the company's five transition growth engines – the others are bioenergy, convenience, electric-vehicle charging and hydrogen.

Notes to editors

• bp operates all three Fowler Ridge wind farms, which collectively have 355 turbines generating enough power to support about 195,000 Indiana homes annually. The Fowler Ridge 1 and 3 wind farms are 100% owned by bp.
  
  
• bp operates nine onshore wind farms across six states and owns an interest in a tenth wind asset in Hawaii.
  
  
• bp's current gross US onshore wind capacity is 1.7 gigawatts (1.3 GW net capacity).
  
  
• Together, bp's US wind farms generate enough renewable electricity to potentially power more than 540,000 homes a year.

Further information:
bp press office US, USPRESS@bp.com

About bp

bp's ambition is to become a net zero company by 2050 or sooner, and to help the world get to net zero. We're transforming bp from an international oil and gas company to an integrated energy company – and America is core to the strategy. bp has a larger economic footprint in the United States than anywhere else in the world, investing more than $145 billion since 2005 and supporting more than 275,000 jobs. For more information on bp in the US, visit www.bp.com/us.

Cautionary statement

In order to utilize the 'safe harbor' provisions of the United States Private Securities Litigation Reform Act of ‎‎1995 (the 'PSLRA'), bp is providing the following cautionary statement. This press release contains certain ‎forward-looking statements – that is, statements related to future, not past events and circumstances – ‎which may relate to one or more of the financial condition, results of operations and businesses of bp and ‎certain of the plans and objectives of bp with respect to these items. These statements are generally, but not ‎always, identified by the use of words such as 'will', 'expects', 'is expected to', 'aims'', 'should', 'may', ‎‎'objective', 'is likely to', 'intends', 'believes', 'anticipates', 'plans', 'we see' or similar expressions. Actual ‎results may differ from those expressed in such statements, depending on a variety of factors including the ‎risk factors set forth in our most recent Annual Report and Form 20-F under "Risk factors" and in any of our ‎more recent public reports.‎

Our most recent Annual Report and Form 20-F and other period filings are available on our website at ‎www.bp.com, or can be obtained from the SEC by calling 1-800-SEC-0330 or on its website at www.sec.gov.‎

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SOURCE bp America

FAQ

What is the expected increase in energy production at Fowler Ridge 1 wind farm after the technology upgrade?

The new Vestas turbines are expected to produce up to 40% more energy, generating an average of 314,000 kilowatt-hours each year.

What is the capital investment for the technology upgrade at Fowler Ridge 1 wind farm?

bp's capital investment was around $100 million for the project, which meets the expected returns for renewables.

How does bp plan to handle the decommissioned blades from the wind farm?

bp plans to recycle the decommissioned blades, keeping up to 3.3 million pounds of material from ending up in landfills, by shredding and blending them with raw materials to make cement products.