Amazon invests in Moray West offshore wind farm to expand renewable energy portfolio

In a significant move towards renewable energy, Amazon has inked a Corporate Power Purchase Agreement (CPPA) with global energy company ENGIE. This deal increases Amazon’s share of output from the Moray West offshore wind farm in Scotland to a formidable 473MW. Once operational later this year, this output will be sufficient to power over 650,000 UK homes annually.

Moray West, an 882MW wind farm located in the Moray Firth in northeast Scotland, is currently under construction and poised to commence power generation in 2024. This project is a key part of the 50-50 EDP Renewables-ENGIE joint venture, Ocean Winds, which is dedicated to offshore wind energy. The accelerated development and construction plan of Ocean Winds aligns perfectly with Amazon’s ambitious goal of powering its global operations entirely with renewable energy by 2025.

In 2023, Amazon announced 39 new renewable energy projects across Europe, significantly boosting the region’s clean energy capacity by more than 1GW. These investments have positioned Amazon as the world’s largest corporate purchaser of renewable energy since 2021. The company currently boasts over 500 wind and solar projects worldwide, anticipated to generate more than 77,000 gigawatt-hours (GWh) of clean energy annually.

Amazon’s renewable energy projects in the UK, from 2014 to 2022, have spurred an estimated £285 million in investment and contributed over £90 million to the UK’s GDP. These projects have also supported 600 local jobs in 2022 alone. Lindsay McQuade, Director of Energy, EMEA, at Amazon Web Services (AWS), emphasized the company’s commitment to transitioning to carbon-free energy sources as part of their Climate Pledge. She noted that 90% of the electricity consumed by Amazon in 2022 came from renewable sources.

ENGIE, on the other hand, has been advancing its renewable energy portfolio vigorously. In 2023, the company signed 19 groundbreaking deals across five countries, adding over 1GW of clean energy capacity. ENGIE’s CPPA portfolio now stands at 7.3GW. Paulo Almirante, ENGIE’s Senior Executive Vice-President of Renewables and Energy Management Activities, highlighted the innovative nature of the CPPA with Amazon, which supports the UK’s renewable deployment and net-zero economy goals.

Bautista Rodriguez, CEO of Ocean Winds, praised the collective efforts that secured the deal with Amazon, marking it as innovative and unprecedented for an offshore wind farm. Moray West is a crucial part of Ocean Winds’ goal to achieve 5-7 GW of operational or under-construction projects and 5-10 GW under advanced development by 2025. The project is expected to inject up to £500 million into the Scottish economy over its lifespan, creating and supporting over 1,000 jobs during construction, with 70 long-term operational roles.

The Moray West project underscores Ocean Winds’ commitment to the UK economy, with over half of the investment and operating costs benefiting local supply chains. The project supports local education and training goals, including transitioning skilled workers from the oil and gas sector, apprenticeship and internship programs, and sponsoring PhD candidates in environmental studies. The growing operational team in Buckie is preparing to take on the project assets as they are commissioned in 2024 and 2025.

This agreement between Amazon and ENGIE through the Ocean Winds project represents a significant stride in the renewable energy sector. It not only showcases Amazon’s commitment to achieving its sustainability goals but also reinforces the importance of renewable energy in the global fight against climate change.