Iberdrola bags PPA with Mercedes-Benz for Windanker offshore wind farm

Spanish electric utility Iberdrola SA (BME:IBE) said on Thursday that it has signed a power purchase agreement (PPA) with Mercedes-Benz Group AG (ETR:MBG), securing an off-taker for a part of the generation output from its 315-MW Windanker offshore wind farm in the German Baltic Sea.

Under the agreement, Mercedes-Benz will procure electricity generated by a roughly 140-MW portion of Windanker’s total planned capacity, Iberdrola said.

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The power supply is due to commence in 2027. Iberdrola expects to fully commission Windanker that same year.

Mercedes-Benz is the largest off-taker from the Windanker wind farm, Iberdrola said. The news comes a day after the utility announced that Amazon.com Inc (NASDAQ:AMZN) signed up for Windanker’s output as part of a wider deal.

“The agreement with Mercedes-Benz Group AG is an important step that allows Iberdrola Deutschland to expand partnerships with industrial and commercial customers that are willing to reduce their carbon footprint and transition towards a green economy. It is through cooperations like these that we can develop large-scale renewable energy projects successfully and on market-based mechanisms,” said Iberdrola Deutschland CEO Felipe Montero.