TOKYO (Kyodo) -- Japanese energy company Jera Co. and British oil major BP plc said Monday they will merge their offshore wind operations at an equally owned joint venture to be set up around September 2025 in London, creating the world's fourth largest offshore wind operator.

The two companies will invest up to a combined $5.8 billion by the end of 2030 in the venture to be called Jera Nex bp, which will have a potential net generating capacity of 13 gigawatts including that of projects under development, they said.

They aim to enhance competitiveness as inflation has driven up development costs of offshore wind operations, with some operators opting to exit the market.

BP CEO Murray Auchincloss said in a joint statement that the deal will be the company's "strong vehicle to grow into an electrifying world, while maintaining a capital-light model for our shareholders."

Yukio Kani, global operations CEO and chair of Jera, said the partnership will "realize the potential of offshore wind globally, while positioning this business for long-term success."

The joint venture will initially focus on existing projects in Europe, Australia and Japan, they said.

Jera, one of the world's leading buyers of liquefied natural gas, is a joint venture between Tokyo Electric Power Company Holdings Inc. and Chubu Electric Power Co. The deal comes as it aims to increase its renewable power output to 20 gigawatts by fiscal 2035, around six times the current level.