BP Aims to Build 2 Wind Farms in the U.K. Minus Government Subsidy
BP plc BP is contemplating the construction of two offshore wind farms close to Ireland without any government assistance, per The Times report. These would be the first of their kind in a sector where development has been hampered by rising costs, the report added.
According to BP's CEO Bernard Looney, work on the Morgan and Mona projects might begin toward the end of 2024. Per the report, the wind farms are located 20 miles off the coasts of north Wales and northwest England and have the capacity to power 3.4 million households.
BP stated that it might not participate in the U.K.'s contracts for difference auctions because it would utilize the generated electricity for its own requirements as it anticipated an increase in energy consumption.
The Times reported that BP does not intend to apply for planning clearance for its projects until early 2024, a process that typically takes at least a year. As a result, wind farms in the U.K. have struggled to secure planning consent and connections to the national grid.
Zacks Rank & Key Picks
BP currently carries a Zack Rank #3 (Hold).
Some better-ranked stocks in the energy space are CVR Energy Inc. CVI, Murphy USA Inc. MUSA and Crestwood Equity Partners LP CEQP. While CVI sports a Zacks Rank #1 (Strong Buy), both MUSA and CEQP carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
CVR Energy is an independent refiner and marketer of high value transportation fuels. Headquartered in Sugar Land, TX, CVI has 1,470 employees. It is also engaged in nitrogen fertilizer manufacturing business through its interest in CVR Partners, LP.
Murphy USA serves 1.6 million customers daily and owns a dedicated line on the Colonial Pipeline. It operates stations near Walmart supercenters and is a low-cost, high-volume fuel seller. This enables the company to attract significantly more transactions than its peers.
Headquartered in Houston, TX, Crestwood is a master limited partnership that provides a wide range of fee-based infrastructure solutions in major U.S. shale plays like the Bakken Shale, Delaware Basin, Powder River Basin, Marcellus Shale and others. The company is least exposed to commodity price fluctuations since it generates stable fee-based revenues from diverse midstream energy assets via long-term contracts.
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BP p.l.c. (BP) : Free Stock Analysis Report
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