Butendiek Offshore Wind Farm signs a PPA  for Hydrogen Production

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Butendiek Offshore Wind Farm signs a PPA for Hydrogen Production

Updated on Nov 01, 2023, 04:00 AM IST
Written by Anandu Manoj

Butendiek offshore wind farm has signed a PPA (Power Purchase Agreement) with the support of Pexapark. The PPA will enable the wind farm to sell 62.5% of its electricity which is around 700 GWh per year, for green hydrogen. Butendiek offshore wind farm has a capacity of 288 MW and produces around 1200 GWh of electricity annually. According to the press statement released by Pexapark, it is one of the first green PPAs signed for Green hydrogen production plants in Germany. 

 

Additionally, The PPA complements Germany's existing EEG (Erneuerbare-Energien-Gesetz) subsidies to bolster renewable energy production in Germany. The EEG law is an existing feed-in tariff (FIT) scheme in Germany that encourages the generation of electricity.

 


 

Butendiek wind farm was commissioned in 2015 with an estimated total project cost of EUR 1.3 billion. Butendiek offshore wind farm is owned by a consortium of investors, which includes WPD, Schroders Greencoat, EWZ, Industriens Pensions, and CITIC Pacific, who are committed to sustainable energy production. Organizations like EWZ, WPD, and Schroders Greencoat are mainly involved in renewable energy projects, whereas Industriens Pensions and CITC Pacific are specifically involved in providing investment support for sustainable energy projects.
 

Björn Nullmeyer director of Butendiak Wind Farm stated that they are pleased to sign a long-term PPA for Butendiak Wind Farm. He also added that this agreement is an example of how wind turbines can be successfully operated even after the expiration of tariffs. Apart from this, In a press release the software and advisory company supporting the Butendiek consortium stated that the agreement enables the distribution of electricity to the green hydrogen facilities.

 

The PPA showcases how the rules for green hydrogen in Europe are ever-changing. The agreement is expected to meet the standards set under the EU Delegated Acts on green hydrogen which was approved in July 2023. The act set standards and methodologies for the verification of renewable 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 played a major role in facilitating this PPA. The partnership will be a milestone for the renewable energy sector, demonstrating the pivotal role of PPAs in optimizing the operations of established wind farms and advancing the green economy.

 

About Butendiak Offshore Windfarm

The 288 MW Butendiek Offshore Wind Farm is located in the North Sea within the German exclusive economic zone 32 km west of the German Island Sylt. The wind farm consists of 80 Siemens 3.6 MW wind turbines mounted on monopile foundations. The project successfully entered the operational stage in the summer of 2015 and is currently supplying electricity to approximately 370,000 households every year.

 

Discover More About large-scale offshore wind projects

 

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