Sustainable Business

Google signs deal to buy power from Orsted's German offshore wind farm

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The logo of Google is seen in Davos, Switzerland January 20, 2020. REUTERS/Arnd Wiegmann/File Photo

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COPENHAGEN, Nov 30 (Reuters) - Danish offshore wind developer Orsted (ORSTED.CO) on Tuesday said it has secured a 12-year power purchase agreement with Google (GOOGL.O), which aims to power all its data centres and offices using solely carbon-free electricity by 2030.

The U.S. tech giant will take 50 megawatt (MW) of output from Orsted's planned 900 MW Borkum Riffgrund 3 wind farm in the German North Sea.

While making it possible for big firms to source green power, such deals also provide a reliable revenue stream for asset owners like Orsted as subsidy schemes are being cut or closed by governments around the globe.

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The Borkum Riffgrund 3 project was the first large-scale wind farm to be awarded without subsidies back in 2018, which at the time was thought to be high risk.

The Danish company said it aims to make a final investment decision for the wind farm at the end of 2021, with operation then scheduled for 2025.

Orsted has also sign power purchase agreements with other companies like polymer producer Covestro (1COV.DE), German food retailer REWE and Amazon (AMZN.O) for Borkum Riffgrund 3.

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Reporting by Stine Jacobsen; Editing by Kirsten Donovan

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