BP may bolster US wind farms

new york/washington — BP is weighing plans to update as many as 200 of its US wind turbines with newer, higher-capacity equipment, a move that would represent the company’s biggest investment in renewable energy since its last wind farm came online in 2012.

If the company green lights the project — a decision that could be reached by mid-year — it would represent about 400 megawatts of capacity. Laura Folse, chief executive of BP Wind Energy, said the move would allow the UK energy giant to capitalise on production tax credits while optimising operations at farms in Texas and Kansas. The company put an initial investment down in December in order to qualify for the full tax credit, which started scaling down this year.

The updates involve swapping out aging equipment such as gearboxes, drive trains and blades, while keeping existing towers and foundations. BP expects the upgraded technology to improve efficiency and reliability while increasing overall energy output.

“It’s not a done deal, but it is very real,” Folse said in an interview. “The newer technology and the improvements make it economic,” Folse said.

With 14 wind farms — including one operated by another company in Hawaii — BP says it has the largest wind-energy business of all major oil companies. BP tried selling off its wind business in 2013, ultimately dropping the plan after failing to find a suitable buyer. — Bloomberg