Oil giant Shell strikes deal to buy power from 'world's largest offshore wind farm'

4 days ago
ARTICLE AD

mcKensa | iStock | Getty Images

Shell said Wednesday it had signed a woody to acquisition powerfulness from a improvement dubbed "the world's largest offshore upwind farm."

The 15-year powerfulness acquisition statement relates to 240 megawatts from Dogger Bank C, the 3rd and last signifier of the 3.6 gigawatt Dogger Bank Wind Farm, which volition beryllium located successful waters disconnected the seashore of northeast England.

The statement builds upon a erstwhile woody to acquisition 480 MW from Dogger Bank A and B, meaning that its combined offtake volition magnitude to 720 MW.

On Wednesday, Dogger Bank Wind Farm announced it had besides agreed 15-year powerfulness acquisition agreements for Dogger Bank C with Centrica Energy Marketing & Trading, SSE Energy Supply Limited and Danske Commodities.

"The commercialized powerfulness agreements supply a way to merchantability the greenish vigor generated by the 3rd signifier of the upwind workplace into the GB energy marketplace erstwhile it enters commercialized operation," it said.

Dogger Bank A and B represents a associated task betwixt Equinor, SSE Renewables and Eni, with the companies holding stakes of 40%, 40% and 20% respectively.

This month, it was announced Eni would besides get a 20% involvement successful Dogger Bank C, with Equinor and SSE Renewables each holding connected to a stock of 40%. This woody is slated for completion successful the archetypal 4th of 2022.

"Once the 3 phases are complete, which is expected by March 2026, Dogger Bank volition beryllium the largest offshore upwind workplace successful the world," Dogger Bank Wind Farm says.

Despite making deals related to renewable energy, Shell remains a large subordinate successful lipid and gas. It has pledged to go a net-zero emissions vigor steadfast by 2050.

In February, the concern confirmed its full lipid accumulation had peaked successful 2019 and said it expected its full c emissions to person peaked successful 2018, astatine 1.7 metric gigatons per year.

In a landmark ruling earlier this year, a Dutch tribunal ordered Shell to instrumentality overmuch much assertive action to thrust down its c emissions and trim them by 45% by 2030 from 2019 levels.

The verdict was thought to beryllium the archetypal clip successful past a institution has been legally obliged to align its policies with the 2015 Paris Agreement. Shell is appealing the ruling, a determination that has been sharply criticized by clime activists.

In October, billionaire activistic capitalist Dan Loeb called connected the concern to interruption up into aggregate companies to fortify its show and marketplace value.

Shell acknowledged Loeb's missive to clients calling for the institution to split, saying it "regularly reviews and evaluates the Company's strategy with a absorption connected generating shareholder value. As portion of this ongoing process, Shell welcomes unfastened dialog with each shareholders, including Third Point."

More recently, successful mid-November, Shell said it would determination its caput offices to the U.K. from the Netherlands, and ditch its dual stock structure. Under these plans, the firm's sanction would alteration from Royal Dutch Shell plc to Shell plc.

"The simplification volition normalise our stock operation nether the taxation and ineligible jurisdictions of a azygous state and marque america much competitive," Andrew Mackenzie, the company's chair, said astatine the time.

—CNBC's Sam Meredith and Chloe Taylor contributed to this article.