Amazon gets into offshore wind via 380-MW PPA with Shell and Eneco

Shell Energy Europe BV (Shell) and Amazon signed an agreement through which Shell will provide Amazon with 50% of the capacity (~380 MW) of the energy generated by the Amazon-Shell HKN Offshore Wind Project.

The offshore wind farm is operated by the Crosswind Consortium, a joint venture between Shell and Eneco. It is scheduled for operation by 2024 and will have an overall capacity of 759 megawatts (MW) that will supply the electricity grid powering the Netherlands without government subsidies. Amazon is purchasing over 50 percent of that capacity, a total of 380 MW, to power its European operations. Specifically, Amazon will offtake 250 MW from Shell and 130 MW from Eneco, for a total of 380 MW.

“Our investment further enables the development of this large-scale, innovative wind project,” Amazon wrote in a blog post. Amazon said this is its largest single renewable energy project to date.

The Amazon-Shell HKN Offshore Wind Project will enable Amazon to power more of its business with clean energy. It will move the company closer to its pledge to become net-zero carbon across its business by 2040 and continue its path to power its operations with 100% renewable energy by 2025 – five years ahead of its 2030 target.

Shell’s ambition is to be a net-zero emissions energy business by 2050 or sooner, in step with society but notes in its press release that as of Feb 8, 2021, the company’s operating plans and budgets do not reflect its net-zero goal. Shell said that “in the future, its operating plans and budgets will change to reflect this movement towards its new net-zero emissions ambition. However, these plans and budgets need to be in step with the movement towards a net-zero emissions economy within society and among Shell’s customers.”

“Supplying Amazon with electricity from this offshore wind farm contributes to their net-zero pledge while progressing our own ambition to be a net-zero emissions business by 2050 or sooner,” said Elisabeth Brinton, Executive Vice President of New Energies at Shell. “We are delighted to continue strengthening our strategic relationship with Amazon Web Services (AWS) across Shell New Energies. Our collaboration is enabling us to continue pushing the boundaries of innovation.”

Shell and Amazon have already achieved milestones together. In July 2020, Amazon’s air cargo network secured up to six million gallons of sustainable aviation fuel supplied by Shell Aviation.

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