The PPA is among the first of its kind for green hydrogen production, as OWP Butendiek will provide electricity to a green hydrogen facility operated by a global leader in the energy industry, which also acts as the offtaker for the agreement.
The OWP Butendiek wind farm has a capacity of 288 MW and produces about 1,200 GWh of electricity annually, of which 62.5 percent will be sold through the PPA. The wind farm is owned by a consortium of investors, including wpd, Schroders Greencoat, ewz, Industriens Pension, and Itochu/CITIC Pacific, who are committed to sustainable energy production.
The PPA not only complements the existing EEG subsidies that support Germany's renewable energy assets, but it also serves as a blueprint for the future, as these subsidies gradually phase out. In the coming years, as more assets come off EEG subsidies, investors will require advanced energy trading capabilities to efficiently manage their operations and enhance their profitability within the post-subsidy market.
This landmark agreement illustrates how PPAs can optimise the operations of established wind farms, foster the growth of the green hydrogen economy, and underscores the pivotal role of Pexapark in designing innovative PPAs that empower renewable energy investors to navigate evolving regulations while securing long-term returns.
Furthermore, this PPA also demonstrates how the green hydrogen rules in Europe are changing, following the approval of the EU Delegated Acts on green hydrogen in July 2023 that set the standards and methods for verifying renewable and green hydrogen. The PPA is expected to meet these standards and to help the EU’s goal of producing 10mn tonnes of green hydrogen by 2030.
Pexapark’s pivotal role in facilitating this ground-breaking PPA underscores the company’s commitment to driving the transition towards renewable energy, through providing innovative software and advisory solutions to its clients across the renewable energy sector.
“We are excited about the signing of a long-term PPA for OWP” said Butendiek Björn Nullmeyer, Managing Director at wpd and acting as Butendiek's Director. “There is a strong interest in offshore wind power to drive the green energy transformation, and this transaction is a good example of how wind power plants can be operated successfully after the tariff expires.”
Mathieu Ville, Head of PPA Transactions at Pexapark, said that the partnership marks a critical milestone in the renewable energy sector, demonstrating the pivotal role of PPAs in optimising the operations of established wind farms and advancing the green hydrogen economy.
“Through this achievement, we hope to support more energy players that are looking to structure innovative PPAs within an evolving regulatory environment” said Mr Ville.
For additional information:
