Germany – Offshore wind farm powers green hydrogen plant under landmark PPA deal.
OWP Butendiek, an offshore wind farm in Germany, has signed a groundbreaking offshore power purchase agreement (PPA) with the support of Pexapark, a software and consulting company specializing in renewable energy.
The PPA is one of the first of its kind for green hydrogen production, as OWP Butendiek will supply electricity to a green hydrogen plant operated by a global energy leader, which also acts as an offtaker for the agreement.
The Butendiek OWP wind farm has a capacity of 288 MW and produces around 1,200 GWh of electricity annually, of which 62.5% is sold via the PPA. The wind farm is owned by a consortium of investors , including wpd, Schroders Greencoat, ewz, Industriens Pension and Itochu/CITIC Pacific, who are committed to sustainable energy production.
The PPA not only complements the existing EEG subsidies to promote renewable energies in Germany, but also serves as a blueprint for the future , as these subsidies are gradually phased out. As more assets benefit from EEG subsidies in the coming years , investors will need advanced energy trading capabilities to efficiently manage their operations and increase their profitability in the post-subsidy market .
This groundbreaking agreement demonstrates how PPAs can optimize the operations of established wind farms and support the growth of the green hydrogen economy, and highlights Pexapark’s pivotal role in designing innovative PPAs that enable renewable energy investors to align with the evolving Navigate regulations while securing long-term returns .
In addition, this PPA also shows how the rules for green hydrogen in Europe are changing following the adoption in July 2023 of the EU delegated acts on green hydrogen , which set the standards and methodologies for the verification of renewable and green hydrogen. The PPA is expected to meet these standards and contribute to the EU’s goal of producing 10 million tonnes of green hydrogen by 2030.
Pexapark’s critical role in enabling this groundbreaking PPA underlines the company’s commitment to driving the transition to renewable energy by providing innovative software and consulting solutions to its customers across the renewable energy sector.
Björn Nullmeyer, managing director at wpd and acting as Butendiek director, said:
We are pleased about signing a long-term PPA for OWP Butendiek.
“There is strong interest in offshore wind power to drive the green energy transition, and this transaction is a good example of how wind turbines can be successfully operated even after the tariff expires.”
Mathieu Ville, Head of PPA Transactions at Pexapark, said:
We are proud to have facilitated this significant offshore PPA for OWP Butendiek.
“This partnership represents a critical milestone in the renewable energy sector and demonstrates the critical role of PPAs in optimizing the operation of established wind farms and promoting the green hydrogen economy . Through this success, we hope to support more energy players looking to structure innovative PPAs in an evolving regulatory environment .”
Highlights:
- Pexapark supports OWP Butendiek in signing one of the first green PPAs for hydrogen production in Germany
- The PPA enables the wind farm to sell 62.5% of its electricity production to a green hydrogen plant and at the same time benefit from existing EEG funding
READ the latest news shaping the hydrogen market at Hydrogen Central
Groundbreaking offshore power purchase agreement (PPA) to produce hydrogen, October 31, 2023