Danish energy trading company Danske Commodities has signed a 20-year Power Purchase Agreement (PPA) with the world’s first floating wind farm, Hywind Scotland.

As the sole offtaker, Danske Commodities will take over balancing and trading of Hywind Scotland’s total volume of 30MW.

Hywind Scotland is owned by Equinor (75%) and Masdar (25%). The wind farm, which is located 30 kilometres off the coast of Scotland, powers around 20,000 households.

“The agreement with Hywind Scotland marks a new chapter for Danske Commodities. By adding a 20-year PPA to our long-term portfolio, we will continue to strengthen our position in the PPA market and support Equinor’s growing portfolio of renewables,” said Danske Commodities CEO Helle Østergaard Kristiansen.

The PPA is part of a planned novation of PPAs to Danske Commodities from new owner Equinor, the company said.

“Hywind Scotland is the world’s first floating wind farm and we are excited to partner up with Danske Commodities. Floating wind farms hold great potential as close to 80% of the ocean’s resource potential is in deep waters. And looking ahead, floating offshore wind is estimated to constitute 10% of the market, potentially powering 12 million homes by 2030,” said Jens Økland, Equinor Senior Vice President, Business Development, New Energy Solutions.