Germany’s OWP Butendiek offshore wind farm is making waves in the renewable energy sector with the signing of a groundbreaking offshore power purchase agreement (PPA). This landmark agreement, with the invaluable support of Pexapark, a software and consulting firm specializing in renewable energy, is a pioneering move in the emerging field of green hydrogen production.
OWP Butendiek will supply electricity to a global energy leader’s green hydrogen plant, which also serves as the off-taker for the agreement.
The OWP Butendiek offshore wind farm boasts an impressive capacity of 288 megawatts (MW) and generates approximately 1,200 gigawatt-hours (GWh) of electricity each year. A notable 62.5% of this clean energy is set to be delivered through the PPA. The wind farm is owned by a consortium of forward-thinking investors, including wpd, Schroders Greencoat, ewz, Industriens Pension, and Itochu/CITIC Pacific, all of whom are deeply committed to sustainable energy production.
This PPA marks a significant step forward in the renewable energy landscape, not only complementing Germany’s existing EEG subsidies designed to promote renewable energies but also serving as a blueprint for the future. As EEG subsidies are gradually phased out and more renewable energy assets enter the market, advanced energy trading capabilities will be crucial to efficiently manage operations and bolster profitability in a post-subsidy environment.
This innovative agreement demonstrates the potential of PPAs to optimize the operations of well-established wind farms while supporting the burgeoning green hydrogen economy. It also underscores the pivotal role played by Pexapark in designing such pioneering PPAs, which enable renewable energy investors to navigate evolving regulatory landscapes and secure long-term returns.
Moreover, this PPA showcases the shifting landscape of green hydrogen rules in Europe, following the adoption of the EU delegated acts on green hydrogen in July 2023. These acts set the standards and methodologies for verifying renewable and green hydrogen, and this PPA is expected to align seamlessly with these standards. As the EU strives to produce 10 million tonnes of green hydrogen by 2030, agreements like this play a vital role in driving that ambitious goal.
Pexapark, as a key enabler of this groundbreaking PPA, reaffirms its dedication to accelerating the transition to renewable energy. The company provides innovative software and consulting solutions to clients across the renewable energy sector, positioning itself as a driving force behind the industry’s evolution.
Björn Nullmeyer, managing director at wpd and acting Butendiek director, expressed his enthusiasm for the long-term PPA, emphasizing that it showcases the potential of offshore wind power to sustainably drive the green energy transition even as tariff structures evolve.
Mathieu Ville, Head of PPA Transactions at Pexapark, echoed this sentiment, highlighting the pivotal role of PPAs in optimizing wind farm operations and fostering the green hydrogen economy. The success of this partnership sets a powerful precedent for other energy players looking to structure innovative PPAs in an ever-evolving regulatory landscape.
The alliance between OWP Butendiek and Pexapark stands as a testament to the profound impact of collaborations that harness the power of offshore wind farms to propel the green energy revolution and make green hydrogen a tangible reality.