Energy majors TotalEnergies and BP have swept the board at a recent auction of offshore German windfarm sites, with them making bids totalling around $14 billion.
BP offered some $7.5 billion for two leases for sites off the coast of Helgoland, which BP believes has the potential to generate up to 4 GW in electricity. This alone is enough to almost double the generating capacity of the wind projects in its pipeline.
The EVP for low-carbon energy and gas at BP, Anja-Isabel Dotzenrath, said about the auction:
“These awards are a huge milestone for BP’s decarbonization plans in Germany and are a strong reflection of our wider strategy. The renewable power we aim to produce will anchor the significant demand we expect for green electrons for our German operations.”
Through its local subsidiaries, TotalEnergies secured the only other two leases on offer for $6.5 billion.
The auction was particularly notable because Bundesnetzagentur, which regulates the German power network, applied a “dynamic bidding procedure” after receiving multiple bids with zero subsidies. Over a number of days, bidders competed in paid bids to secure the leases. Of the funds raised by the auction, 90% will be spent on subsidising the cost of electricity, with the remaining 10% being used to promote sustainable fishing and marine conservation.
As well as being wind power operators in their own right, both companies also offer gear oils for wind turbines in the Total Carter and Castrol Optigear ranges. Contact our expert team here at TrAchem to learn more.