Energy News September 2024

Belgian support scheme for renewable offshore wind energy approved

Belgium plans a €682 million scheme to support renewable offshore wind energy to foster the transition towards a net-zero economy. The measure will support the construction and operation of the first offshore windfarm in the Princess Elisabeth Zone in the North Sea with a capacity of 700 MW and an annual output of 2,6 TWh. The aid will take the form of a monthly variable premium under a two-way contract for difference (‘CfD'). The price premium will be calculated by the CREG by comparing the strike price, determined in the tender offer of the selected beneficiary, to a reference market price for electricity. When the strike price exceeds the reference market price, the difference (price premium) is paid by the Belgian State to the beneficiary. Conversely, when the reference market price exceeds the strike price, the beneficiary will have to pay the difference to the Belgian authorities.

The Commission concluded that the Belgian scheme is necessary, appropriate and proportionate to accelerate the green transition and facilitate the development of certain economic activities. On this basis, the Commission approved the aid measure under EU State aid rules.

Offshore wind energy tender in the Netherlands awarded

The largest tender for offshore wind farms in the Netherlands so far has been successfully completed. The wind energy areas are about 62 kilometres off the coast. Noordzeker, a consortium of ABP, APG and SSE Renewables, is the winner of the permit for wind farm IJmuiden Ver lot Alpha. The focus is on restoring and enhancing the nature of the North Sea including artificial reefs. Noordzeker made a financial bid of over €1 million per year, which Noordzeker will pay annually throughout the 40-year licence term. Noordzeker will also pay the costs of the environmental impact assessments and site studies amounting to around €20 million.

Zeevonk II, a joint venture between Vattenfall and Copenhagen Infrastructure Partners (CIP) is the winner of IJmuiden Ver lot Beta. For this wind farm, the focus is on the smart integration of the wind farm into the energy system. Zeevonk II will build an electrolyser (hydrogen plant) with a capacity of 1 gigawatt in the port of Rotterdam. Zeevonk II has made a financial offer of €20 million per year, also for a period of 40 years. Zeevonk II will also pay the cost of the environmental impact assessments and site studies amounting to about €20 million.

The 2 wind farms will produce renewable electricity and each will have a capacity of at least 2 gigawatts. The wind farms are expected to be commissioned in 2029.

In addition, wind farm developers can apply for permits for the next tender for lots IJmuiden Ver Gamma and Nederwiek I (4 tenders of 1 gigawatt) by autumn 2025.

Clean energy agreement between Belgium and Norway

The Flemish and Belgian governments signed energy agreements with Norway on the intention to bring Norwegian wind energy to Belgium and store CO₂ from Belgian industry in Norway via pipeline transport. The joint statement on energy cooperation in the North Sea should provide political support for a future connection between the Belgian and Norwegian energy networks. These agreements were signed during an economic mission of Princess Astrid of Belgium with a large business delegation.

Biomethane purchase agreement for BASF

BASF signed 7-year biomethane purchase agreement with Engie for the supply of 2.7-3.0 TWh of biomethane throughout the timeframe. BASF will use the certified biomethane at Antwerp (Belgium) and Ludwigshafen (Germany) as sustainable alternative to fossil raw materials in the manufacturing process. The biomethane is allocated to the end product using the Biomass Balance approach according to the REDcert2 and ISCC PLUS certification requirements.