Holcim inks PPA with Iberdrola's Baltic Eagle offshore wind farm

Spanish utility Iberdrola SA (BME:IBE) has secured a corporate off-taker for some of the output of its 476-MW Baltic Eagle offshore wind farm it is currently constructing in German waters.

The group signed a power purchase agreement (PPA) with Swiss building materials manufacturer Holcim AG (SWX:HOLN), which will procure 250 GWh of electricity per year for 15 years for its operations in Germany, the companies said on Wednesday.

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The PPA will support Holcim’s clean energy goals in Germany, where it aiming to satisfy at least 80% of its electricity demand with renewables by 2030.

Iberdrola is currently building the wind farm some 30 kilometres (18.6 miles) to the northeast of the island of Ruegen in the German Baltic Sea. It expects to finalise construction in 2024.

The Baltic Eagle wind farm will also generate electricity for German steel producer Salzgitter AG (ETR:SZG) under a PPA for 114 MW, according to a recent announcement.

Iberdrola said separately that its wider agreement with Holcim included establishing a working group that will look into the potential for delivering other sustainable solutions in Europe and other continents. These may include additional PPAs for Holcim’s operations and the analysis of suitable sites for the development of on-site renewables, from solar to green hydrogen.