A consortium of investors has signed a unique power purchase agreement (PPA) to supply a hydrogen production facility with 756 GWh/year of German offshore wind, renewables advisory firm Pexapark said on Tuesday.
The 6.5-year deal related to the Butendiek offshore wind farm (288 MW) off the coast of Germany which went online in 2015.
Around 63% of the plant’s annual 1.2 TWh production would be sold through the PPA, according to Pexapark.
“The PPA is among the first of its kind for green hydrogen production and would provide power to a green hydrogen facility operated by a global leader in the energy industry, which also acts as the offtaker for the agreement,” it added in a statement.
The wind farm is owned by a consortium of investors, including wpd, Schroders Greencoat, ewz, Industriens Pension, and Itochu/CITIC Pacific.
The PPA would complement a subsidy the plant currently receives under Germany’s EEG scheme and “also serves as a blueprint for the future, as these subsidies gradually phase out”, Pexapark said.
It was a “good example of how wind power plants can be operated successfully after the tariff expires”, Bjorn Nullmeyer, managing director at wpd and acting director for Butendiek, said.
“In the coming years, as more assets come off EEG subsidies, investors will require advanced energy trading capabilities to efficiently manage their operations and enhance their profitability within the post-subsidy market,” Pexapark added.
The PPA is expected to meet EU standards on green hydrogen and contribute to the bloc’s goal of producing 10m tonnes of the renewable gas by 2030, it said.
Pexapark did not reveal the offtaker or financial details of the deal.
