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shell It said on Wednesday that it had signed an agreement to purchase electricity from a development project known as “the world’s largest offshore wind farm.”
The 15-year power purchase agreement involves 240 MW of electricity from Dogger Bank C. This is the third and final stage of the 3.6 GW Dogger Bank wind farm, which will be located in the waters off the northeastern coast of England.
The agreement builds on the previous purchase of 480 MW from Dogger Bank A and B, which means that its total offtake will reach 720 MW.
On Wednesday, Dogger Bank Wind Farm announced that it had also reached a 15-year power purchase agreement for Dogger Bank C with Centrica Energy Marketing & Trading, SSE Energy Supply Limited and Danske Commodities.
“The commercial electricity agreement provides a way to sell the green energy generated in the third phase of the wind farm to the UK electricity market when it enters commercial operations,” it said.
This month, Eni announced that it will also acquire a 20% stake in Dogger Bank C. Equinor and SSE Renewables each hold a 40% stake. The transaction is scheduled to be completed in the first quarter of 2022.
“Once the three phases are completed, it is expected that by March 2026, Dogger Bank will become the world’s largest offshore wind farm,” said Dogger Bank Wind Farm.
In spite of reaching deals related to renewable energy, Shell is still a major player in the oil and gas sector. It has pledged to become a net zero emission energy company by 2050.
In February, The company confirms that its total oil production has peaked in 2019 It also stated that its total carbon emissions are expected to peak in 2018, reaching 1.7 metric tons per year.
In a landmark ruling earlier this year, Dutch court orders Shell to take more radical action Reduce carbon emissions by 45% by 2030 from 2019 levels.
This judgment is considered to be the first time in history that a company is legally obliged to align its policies with the 2015 Paris Agreement. Shell is appealing the ruling, a move that has been severely criticized by climate activists.
In October, billionaire activist investor Dan Loeb called for the business to be split into multiple companies to strengthen its performance and market value.
Shell acknowledged Loeb’s letter to clients requesting the company to split, stating that it “regularly review and evaluate the company’s strategy with a focus on creating shareholder value. As part of this ongoing process, Shell welcomes an open dialogue with all shareholders, including Third Point. “
Recently, in mid-November, Shell said it will move its headquarters from the Netherlands to the UK, And abandon its dual shareholding structure. According to these plans, the company’s name will be changed from Royal Dutch Shell to Shell.
The company’s chairman, Andrew Mackenzie, said at the time: “This simplification will normalize our shareholding structure within the tax and legal jurisdiction of a single country and make us more competitive.”
— CNBC’s Sam Meredith and Chloe Taylor contributed to this article.