Shell, oil giant confirms deal to purchase energy from ‘world’s largest offshore wind farm’

Shell, oil giant confirms deal to purchase energy from ‘world’s largest offshore wind farm’

Overview:

  • The 15-year power purchase agreement relates to 240 megawatts from Dogger Bank C, the third and final phase of the 3.6 gigawatts Dogger Bank Wind Farm
  • “Once the three phases are complete, which is expected by March 2026, Dogger Bank will be the largest offshore wind farm in the world,” Dogger Bank Wind Farm says

The Base of the Agreement

Shell announced on Wednesday that it has inked a deal to buy power from the world’s largest offshore wind farm. The 15-year power purchase agreement covers 240 megawatts from Dogger Bank C, the 3.6-gigawatt Dogger Bank Wind Farm’s third and final phase. This will take place in the waters off the northeastern coast of England.

The agreement builds on a prior agreement to buy 480 MW from Dogger Bank A and B, bringing the total offtake to 720 MW.

Centrica Energy Marketing & Trading, SSE Energy Supply Limited, and Danske Commodities have signed 15-year power purchase agreements with Dogger Bank Wind Farm for Dogger Bank C. “The commercial power agreements provide a channel for green energy to be sold. When the third phase of the wind farm goes into commercial operation, this energy will be generated and sold into the GB electricity market,” it stated.

Eni also announced this month that it would purchase a 20% investment in Dogger Bank C, with Equinor and SSE Renewables each having a 40% stake. The said transaction is predicted to close in the 2022’s first quarter. Despite signing renewable energy partnerships, Shell remains a big role in the oil and gas industry. It has committed to becoming a zero-emissions energy company by 2050.

The firm verified in the month of February that complete oil production pointed in 2019 and that entire carbon emissions pointed in 2018, at 1.7 metric gigatonnes, every year.

Current Scenario for the Oil Giant

Shell was ordered by a Dutch court earlier this year to take far more aggressive steps to decrease its carbon emissions, to reduce them by 45 percent by 2030 from current levels.

The ruling was widely regarded as the first time in history that a firm was legally required to align its policies with the 2015 Paris Agreement. Shell has decided to challenge the decision, which has been panned by environmentalists.

Shell said it “frequently analyses and evaluates the Business’s strategy with a focus on generating shareholder value,” in response to Loeb’s letter to clients urging for the company to split. Shell supports open engagement with all shareholders, including Third Point, as part of this continuous process.”

Shell said in mid-November that it would relocate its headquarters from the Netherlands to the United Kingdom and abandon its dual share structure. The company’s name would be changed from Royal Dutch Shell plc to Shell plc under these plans.

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