Investment in Dutch wind farm
The Blauwwind consortium (Shell interest 20%) began building the Borssele III & IV offshore wind farm in the North Sea in 2019. The wind farm, located 22 km from the Dutch coast, will be operational at the end of 2020. Shell has signed agreements to buy 50% of the power produced. The 77 turbines will provide a total installed capacity of 731.5 MW, enough to power 825,000 households.
Shell’s investment is made through a Dutch-resident company that is subject to Dutch income tax. Shell’s income from the sale of power generated by the wind farm is taxable in the Netherlands at the ordinary Dutch corporate income tax rate of 25%. Qualifying costs are tax deductible, in accordance with standard Dutch corporate income tax rules.