TOKYO, Oct 22 (Reuters) - JERA Nex BP, a joint venture

between Japan's top power generator JERA and BP, plans to

halt development of the U.S. Beacon offshore wind power project

and lay off its U.S. employees in the coming months, the venture

said in a statement.

The decision marks the latest setback for the U.S. offshore

wind industry, which has been hit by soaring costs from supply

chain disruption, inflation and the impact of U.S. President

Donald Trump's opposition to such projects.

JERA Nex BP said it did not see a viable path to develop the

Beacon project in the current environment and that it would

close its operating activities in the United States.

The potential generating capacity of the project was 2.6

gigawatts, enough to power over 1 million homes in the

northeastern United States.

The company will retain the Beacon lease rights off the

coast of Massachusetts and wait for a more favourable time to

resume development, it added.

BP and JERA agreed in December to form one of the world's

largest offshore wind operators. Its creation reflected BP's

retreat from offshore wind to spend more on higher-return oil

and gas operations.

The joint venture, headquartered in London, was formally

established in August and pooled a mix of operating assets and

development projects in the United States, Belgium, Germany,

Japan, Taiwan, Britain, Ireland and Australia. When it formed,

its net potential generating capacity was 13 GW.