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Shell said on Wednesday it had signed an agreement to buy power from a development dubbed “the world’s largest offshore wind farm”.
The 15-year power purchase agreement covers 240 megawatts of Dogger Bank C, the third and final phase of the 3.6 gigawatt Dogger Bank wind farm, which will be located in the waters off the north-east coast of England.
The deal builds on a previous deal to purchase 480 MW from Dogger Bank A and B, meaning its combined drawdown will amount to 720 MW.
Dogger Bank Wind Farm announced on Wednesday that it has also entered into 15-year power purchase agreements for Dogger Bank C with Centrica Energy Marketing & Trading, SSE Energy Supply Limited and Danske Commodities.
“The electricity trade agreements provide a way to sell the green energy generated by the third phase of the wind farm into the UK electricity market when it enters into commercial operation,” he said.
Dogger Bank A and B represent a joint venture between Equinor, SSE Renewables and Eni, the companies holding 40%, 40% and 20% interests respectively.
This month it was announced that Eni will also acquire a 20% stake in Dogger Bank C, with Equinor and SSE Renewables each holding a 40% stake. This agreement is expected to be finalized in the first quarter of 2022.
“Once all three phases are completed, which is expected by March 2026, Dogger Bank will be the largest offshore wind farm in the world,” Dogger Bank Wind Farm said.
Despite the conclusion of renewable energy agreements, Shell remains a major player in oil and gas. It is committed to becoming a net zero emission energy company by 2050.
In February, the company confirmed that its total oil production peaked in 2019 and said it expected its total carbon emissions to peak in 2018, at 1.7 metric gigatons per year.
In a landmark ruling earlier this year, a Dutch court ordered Shell to take much more aggressive action to cut its carbon emissions and cut them by 45% by 2030 from 2019 levels.
The verdict was believed to be the first time in history that a company was legally obliged to align its policies with the 2015 Paris Agreement. Shell is appealing the decision, a decision which has been strongly criticized by climate activists.
In October, billionaire activist investor Dan Loeb called on the company to split into multiple companies to bolster its performance and market value.
Shell took note of Loeb’s letter to customers calling for the company to split up, saying that it “regularly reviews and assesses 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. “
More recently, in mid-November, Shell announced that it would move its headquarters from the Netherlands to the UK and abandon its dual-share structure. As part of these plans, the name of the company would change from Royal Dutch Shell plc to Shell plc.
“The simplification will standardize our share structure under the tax and legal jurisdictions of a single country and make us more competitive,” said Andrew Mackenzie, chairman of the company at the time.
—Sam Meredith and Chloe Taylor of CNBC contributed to this article.