Shell and Google claim offshore wind world-first after deal

Oil supermajor Shell and technology giant Google have entered the first offshore wind project life extension enabled by a corporate power purchase agreement (PPA), the companies claimed.

Shell’s NoordzeeWind, built in 2007, was given the greenlight by Dutch authorities to continue operating until 2031, marking a five-year extension on its lifespan.

After technical and environmental review, “I am pleased that it has been possible to extend the service life by a number of years,” said Marc Hoenders, director of energy transition realisation at the Netherlands’ Ministry of Climate and Green Growth.

The 108MW array was the first largescale offshore wind array in Dutch waters. Comprised of 36 3MW Vestas turbines, the array is located some 10km off the nation’s northeast coastline.

Technical upgrades and permit extensions were enabled by Google’s PPA, part of the American technology firm’s ongoing drive to power its operations entirely through renewables.

This is “the first time that a corporate PPA has enabled the economic life extension of an offshore wind farm,” the two companies said in a release.

Initially a joint venture (JV) of Shell and Nuon, later Vattenfall, the project was later taken over entirely by Shell, which continues its operation.

“With NoordzeeWind, Shell has not only shown that offshore wind energy is technically and financially feasible, we have also learned a lot. And we are applying those lessons to our other three wind farms in the Dutch part of the North Sea," said Frans Everts, CEO of Shell Netherlands.

Shell was an early mover into green energy to stay ahead of the energy transition that at one time looked likely to threaten the bottom line of oil majors.

Along with BP and TotalEnergies, Shell launched a concerted push into the power sector, with a focus on areas such as offshore wind and solar, and set stretching decarbonisation targets for its business.

The rise of US President Donald Trump amid ongoing turmoil in renewables due to inflation and supply chain issues has put Shell’s green energy plans in jeopardy, and like most oil majors, the London-based firm is pulling back on its investment.