Shell has signed a Letter of Intent to join the VindØ consortium of PensionDanmark, PFA, Andel, and Copenhagen Infrastructure Partners in developing and building what could potentially be Denmark’s first energy island.
The Letter of Intent contains the general terms and conditions for Shell’s participation and co-financing of the project.
It is part of the ambition that the Shell and VindØ consortium is expected to enter into a collaboration to use the power from the associated offshore wind farms to produce green hydrogen on the island, the consortium said.
The final agreement with Shell is expected to be finalized within the coming months.
The consortium expects to participate in the forthcoming tender for the construction of the energy island, where the Danish Energy Agency is expected to nominate a winner during 2024.
”We look forward to welcoming Shell into the VindØ consortium. Shell’s significant resources and experience from the energy sector and the intention to produce green hydrogen on the island strengthen the consortium’s opportunities to submit a competitive bid for the construction of Denmark’s first energy island. We are pleased that a large energy company such as Shell is seriously joining the green transition in Denmark,” said Torben Möger Pedersen , CEO of PensionDanmark.
The artificial island, made of submersible concrete boxes, is to be built in the Danish part of the North Sea, around 80 to 100 kilometres from land.
The island is to be established by 2030, at the latest, and connect 3 GW of offshore wind.
Over time, the island will connect 10 GW offshore wind and host energy storage and Power-to-X as well as accommodation, O&M facilities, and HVDC converters for transmission and interconnectors.