BP plc ( BP Quick Quote BP - Free Report) announced the successful completion of a major technology upgrade at its Fowler Ridge 1 wind farm in Northwest Indiana. The upgrade is poised to significantly increase the facility's power generation, efficiency and reliability.
The key feature of the upgrade is the installation of cutting-edge Vestas turbines, designed to generate up to 40% more energy. Anticipated to produce an average of 314,000 kilowatt-hours annually, these turbines could potentially power 27,000 homes with renewable electricity. The new technology excels in efficiency even at lower wind speed, maximizing electricity generation from available wind resources.
The extensive upgrade involved the improvement of 40 turbines, featuring the installation of 120 individual blades and 40 new nacelles, housing power generation equipment and transformers atop the wind towers. With a capital investment of approximately $100 million, the project aligns with BP's expected returns for renewables.
As the operator of all three Fowler Ridge wind farms, BP maintains 355 turbines collectively, generating enough power to support about 195,000 Indiana homes annually. The Fowler Ridge 1 and 3 wind farms are entirely owned by BP, showcasing the company's commitment to sustainable energy practices. The company currently operates nine onshore wind farms across six states and has an interest in a tenth wind asset in Hawaii. With a current gross U.S. onshore wind capacity of 1.7 gigawatts (1.3 GW net capacity), BP's U.S. wind farms collectively have the potential to power more than 540,000 homes per year with renewable electricity.
The company plans to recycle the decommissioned blades from the wind farm, diverting up to 3.3 million pounds of material away from landfills. The blades will be shredded and blended with raw materials to create cement products.
Orlando Alvarez, chairman and president of BP America, highlighted the project's importance, stating that this project is a substantial upgrade for the wind farm and another investment in BP's low-carbon energy future. It shows the company’s strategy in action, contributing to a more secure, affordable and lower carbon energy mix while pursuing its net-zero ambition.
Ramit Bajaj, senior vice president of Construction & Operations for Vestas North America, expressed his excitement about the partnership, stating that repowering wind projects offers an optimal solution for aging fleets by increasing the annual energy production and expanding the lifespan of a project that is a critical component of the clean energy transition.
Zacks Rank & Key Picks
BP currently carries a Zack Rank #3 (Hold).
Some better-ranked stocks in the
energy sector are Matador Resources Company ( MTDR Quick Quote MTDR - Free Report) , Liberty Energy Inc. ( LBRT Quick Quote LBRT - Free Report) and Oceaneering International, Inc. ( OII Quick Quote OII - Free Report) , each currently sporting a Zacks Rank #1 (Strong Buy). You can see . the complete list of today’s Zacks #1 Rank stocks here
Matador Resources is among the leading oil and gas explorers in the shale and unconventional resources in the United States. The company’s prime intention is to create more value for shareholders and generate lucrative returns from the capital invested in unconventional plays.
MTDR’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 13.89%.
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Oceaneering International is a leading provider of integrated technology solutions, active at all phases of the offshore oilfield lifecycle. Its strong relationship with high-quality customers provides revenue visibility and business certainty. It is well-positioned to supply equipment for deep-water projects and is active at all phases of the offshore oilfield lifecycle.