Danish energy trading company Danske Commodities has inked a 15-year power purchase agreement (PPA) with the owners of the UK’s pioneering 317MW Sheringham Shoal offshore wind farm, in another demonstration of the financial sector’s growing belief in the bankability the energy resource.
Through the deal, the power-trader will take over balancing and trading of 126MW, some 40% of the total production of the wind farm, owned by Equinor (40%), Equitix (40%) and the Green Investment Group (20%).
The PPA is Daske Commodities’ second in the sector in the last month, coming in the wake of its signing of a 20-year PPA with Equinor – which bought the trading house in a €400m ($468m) deal last year – for production from 30MW Hywind Scotland, the world’s first floating wind array.
“The world needs more energy, and in the future, more of its energy supply will have to come from renewable resources such as hydropower, waves and wind,” said Tor Martin Anfinnsen, senior vice president for marketing and trading in Equinor. “With around 40% of the EU’s entire wind resources available in British waters, it makes sense to harness offshore wind.”
Danske Commodities CEO Helle Østergaard Kristiansen added: “The Sheringham Shoal PPA is a great addition to our long-term portfolio. Danske Commodities has traded power in the UK for the past ten years and we continue to be a part of the exciting development of British offshore wind.”
With the latest PPA, Danske Commodities now has more than 1.1GW of renewable assets under management in the UK and trades power in 38 countries.
Equinor’s (then Statoil’s) first offshore wind farm development, Sheringham Shoal, which is located 17 km off the coast of North Norfolk, was brought to first power in 2011 and into full production a year later, supplying about 220,000 UK households