German railway company Deutsche Bahn has signed a five-year agreement for the supply of green electricity from the offshore wind farm Nordsee Ost.

The contact has been signed between DB subsidiary DB Energie GmbH, RWE Supply & Trading, and innogy SE. The agreement will come into effect from 2024.

Under the power purchase agreement (PPA), the wind farm will supply 25MW of energy, which is equivalent to the amount of energy supplied by four wind turbines.

This constitutes 8% of the total production of the farm that produces 295MW in total with 48 turbines.

DB Energie CEO Torsten Schein said: “Over the next few years, we will consistently replace expiring contracts based on fossil-fuel generation with renewable energy. Before the end of September, we will start a further Europe-wide invitation to tender for the long-term purchase of green electricity.”

By 2038, DB plans to use 100% green energy for its rail operations. Currently, 57% of the company’s energy requirements are obtained from renewable energy.

The company requires approximately 10TWh of energy in one year. It receives 900 million KWh annually from Innogy hydropower plants.

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Innogy SE COO Renewables Hans Bünting said: “This is a win-win deal for all parties involved. From 2024, Deutsche Bahn will run climate-friendly trains with green electricity from our Nordsee Ost offshore wind farm.

“After the reduction of state subsidies, we are pleased to have agreed commercial terms for the supply of electricity from the first turbines at our wind farm and created scope for further investment in this way.”

This contract marks Germany’s first offshore wind corporate power purchase agreement.

The company will purchase the energy at a fixed price from the offshore wind farm. RWE will act as the contract and retail partner.