German offshore wind farm OWP Butendiek has successfully inked a significant power purchase agreement (PPA), with advisory firm Pexapark playing a pivotal role in facilitating the arrangement. This agreement is set to power green hydrogen production, adding momentum to the green energy transition.
The OWP Butendiek project, boasting a capacity of 288 megawatts (MW), will supply electricity to a global energy industry leader, which also serves as the primary offtaker for the PPA. The agreement encompasses 62.5% of the wind farm's annual electricity production, estimated at 1200 gigawatt-hours (GWh).
This wind farm is jointly owned by a consortium of committed investors, including wpd, Schroders Greencoat, ewz, Industriens Pension, and Itochu/CITIC Pacific, all dedicated to sustainable energy production.
Bjorn Nullmeyer, Managing Director at wpd and acting Director of Butendiek, expressed his enthusiasm about the long-term PPA, emphasizing the strong interest in offshore wind power as a driver of the green energy transformation. He cited this transaction as a prime example of how offshore wind power plants can operate successfully beyond tariff expiration.
Mathieu Ville, Head of PPA Transactions at Pexapark, commended their role in facilitating this offshore PPA for OWP Butendiek. Ville emphasized the significance of this partnership within the renewable energy sector, highlighting the critical role of PPAs in optimizing the operations of established wind farms and advancing the green hydrogen economy. He also expressed the hope that this achievement would serve as a model for other energy players seeking to structure innovative PPAs in an evolving regulatory environment.
The agreement underscores the growing role of renewable energy sources in driving the production of green hydrogen, a key component in the transition to a more sustainable and environmentally friendly energy landscape. As the green energy revolution continues to gain momentum, such partnerships are instrumental in the broader goals of reducing carbon emissions and fostering a cleaner, more sustainable future.