Danske Commodities signs 20-year PPA with Hywind Scotland wind farm
Danish energy trading company Danske Commodities says that it has signed a 20-year Power Purchase Agreement (PPA) with the world’s first floating wind farm, Hywind Scotland. This is part of a planned novation of PPAs to Danske Commodities from new owner Equinor.
As the sole offtaker, Danske Commodities will take over balancing and trading of Hywind Scotland’s total volume of 30 MW. Hywind Scotland is owned by Equinor (75%) and Masdar (25%). The wind farm, which is located 30 km off the coast of Scotland, powers around 20,000 households.
“The agreement with Hywind Scotland marks a new chapter for Danske Commodities. By adding a 20-year PPA to our long-term portfolio, we will continue to strengthen our position in the PPA market and support Equinor’s growing portfolio of renewables”, said Danske Commodities CEO Helle Østergaard Kristiansen.
“Hywind Scotland is the world’s first floating wind farm and we are excited to partner up with Danske Commodities. Floating wind farms hold great potential as close to 80% of the ocean’s resource potential is in deep waters. And looking ahead, floating offshore wind is estimated to constitute 10% of the market, potentially powering 12 million homes by 2030”, said Jens Økland, Equinor Senior Vice President, Business Development, New Energy Solutions.
The Hywind Scotland PPA is one of the business activities that Danske Commodities will take on to maximise the value of Equinor’s growing production of renewable energy. In addition, Danske Commodities has started handling Equinor’s certificates trading activities.
Danske Commodities has more than 5,900 MW of renewable assets under management in Europe and is active in 38 power markets.