Energy trading company Danske Commodities announced that it has signed a 15-year offtake power purchase agreement (PPA) for 480 MW with the world’s largest offshore wind farm, Dogger Bank.
Under the agreement, Danske Commodities will be responsible for the trading and balancing of 480 MW.
Dogger Bank Wind Farm is owned by Equinor (50%) and SSE Renewables (50%) and is located 130 km off the coast of Yorkshire in the UK. With a total capacity of 3.6 GW, Dogger Bank is set to become the world’s largest offshore windfarm and will provide 4.5 million British households with renewable electricity.
The Dogger Bank wind farm consists of three phases; Dogger Bank A, Dogger Bank B and Dogger Bank C. Each phase accounts for 1.2 GW of the farm’s total capacity of 3.6 GW. Danske Commodities will offtake power from the first two phases, Dogger Bank A and Dogger Bank B.
“Signing a long-term PPA with the world’s largest offshore wind farm cements Danske Commodities’ position as a leading energy trading company. We are constantly growing our market position in the renewables space to support the energy transition with our expertise in trading and balancing,” said Danske Commodities’ CEO Helle Ostergaard Kristiansen.
The Dogger Bank agreement adds to Danske Commodities’ growing presence in the PPA market. Last year, the energy trader inked a 20-year PPA with Hywind Scotland wind farm (the world’s first floating wind farm), a 15-year PPA with Sheringham Shoal wind farm and a 15-year PPA with Dudgeon wind farm as part of a planned novation from owner Equinor.
“The Dogger Bank PPA is a great addition to our long-term portfolio and it shows our commitment to British renewables. Danske Commodities has traded power in the UK for more than ten years and we see PPAs as a crucial part of ensuring the continued development of renewables,” said Danske Commodities’ VP, Head of European Power Trading Tor Mosegaard.
“As Equinor’s power trading arm and route-to-market for renewable power production, we help turn green ambitions into an economically viable business – one wind farm at a time,” Tor Mosegaard concluded.
The offtake power purchase agreement is subject to financial close on Dogger Bank A and Dogger Bank B, expected late 2020.
Danske Commodities now has more than 5,000 MW of renewable assets under management and trades power in 39 countries.