finance

Seagreen launches offshore corporate contracts for its £3 billion windfarm



Seagreen Wind Energy has introduced a new offshore corporate contract to let companies buy renewable energy from the £3bn joint venture.

The Seagreen Offshore Wind Farm is expected to be operational in 2023 and claims it will be able to produce enough electricity to power 1.6 million homes, or the equivalent of almost every home and business in Edinburgh and Glasgow combined.

The offshore corporate purchase power agreements (cPPA) will let businesses buy some or all of their energy directly from a renewable energy source.

The approach differs from the traditional arrangement, in which organisations would simply buy electricity from licensed electricity suppliers.

The Seagreen terms significantly shorten the typical cPPA length, providing buyers with an alternative option to standard longer-term cPPAs.

Typically, contracts are 10 years or more in duration. However, Seagreen is offering five year contracts for the offshore cPPA.

It claims energy-intensive corporations will be able to share in the displacement of around two million tonnes of carbon dioxide emissions per annum to help meet their environmental goals and sustainability commitments.

Businesses will be able to purchase energy in blocks of 20 megawatts (MW) or 100 gigawatt per hour (GWh) per annum as part of the Seagreen offshore cPPA.

Tenders for Seagreen’s offshore cPPAs will be released later this year, after the summer.

The £3bn joint venture project between TotalEnergies and SSE Renewables will have 114 10MW turbines in the deep waters 27km off the coast of Angus in the North Sea, which it claims will be the world’s deepest fixed-bottom offshore wind farm.

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SSE Renewables is leading the development and construction of the joint venture project, supported by TotalEnergies, and will operate Seagreen on completion.

Damien McSweeney, finance director for Seagreen Wind Energy, said: “Seagreen offers an opportunity for large corporates to buy renewable energy that may normally be out of their reach – we are innovating the offshore cPPA model to help energy-intensive businesses to hit net-zero targets with ease and speed.”

Paul Cooley, director of capital projects at SSE Renewables, added: “The short-term offshore cPPA allows corporates the chance to help decarbonise their renewable energy supplies through one contract with a truly iconic wind farm – a major competitive edge in the year of COP26.”

Olivier Terneaud, vice president offshore wind at TotalEnergies, said: “Seagreen is a key strategic project and it underlines both our commitment to investing in Scotland and reaching net zero, by becoming a multi-energy company, we aim to address the dual challenge of the energy transition: to supply more energy but with fewer emissions.”

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