Vattenfall and Air Liquide have signed a power purchase agreement (PPA) covering 115MW of the offshore wind farm Hollandse Kust Zuid, off the Netherlands.
The PPA is for around 500 gigawatt-hours annually from the 1.5GW wind farm and has a term of 15 years, starting in 2025.
It will enable Air Liquide to supply its existing industrial and medical gas production assets in the Netherlands and more generally in the Benelux region with renewable energy.
The new PPA is in addition to a 100 GWh the two companies signed in March 2021.
Erik Suichies, an executive in Vattenfall’s business area markets team, said: “This Power Purchase Agreement is an important step for the Hollandse Kust Zuid project.
“Long-term commitments such as PPAs will make a significant contribution to the decarbonisation goals of our industrial partners and help to bring closer Vattenfall’s ambition to create a fossil-free living within one generation at the same time.”
Hollandse Kust Zuid is the first and largest offshore wind project in the world to be developed without subsidy.
Long-term contracts, such as the PPAs concluded with Air Liquide, provide financial security for the project’s investors and provide access to renewable energy for the purchasing party.
Hollandse Kust Zuid is located in the North Sea, about 18-35 km off the Dutch coast between the Hague and Zandvoort.
The offshore wind project, consisting of 140 wind turbines, is scheduled to be fully operational in 2023.
Hollandse Kust Zuid is owned by Vattenfall, BASF and Allianz.