Partnership to be Expanded: BASF Buys 49 Percent of The Shares in The Nordlicht 1 And 2 Offshore Wind Farms From Vattenfall

Stockholm, Sweden - The energy company Vattenfall and the chemical company BASF have contractually agreed on the sale of 49 percent of the shares in Vattenfall's offshore wind farm projects Nordlicht 1 and 2 to BASF. The two companies are thus deepening their partnership in the field of renewable energies.

Vattenfall is responsible to develop and construct the Nordlicht sites and intends to use its share of future electricity generation to supply customers in Germany with fossil-free electricity. BASF will use almost half of the electricity to supply its chemical production sites in Europe, particularly in Ludwigshafen.

The Nordlicht wind project is being built in the German North Sea without state support and, with a total capacity of 1,600 MW (1.6 GW), is the largest offshore wind farm project realized by Vattenfall to date.

Nordlicht is already Vattenfall's second major offshore wind project in which BASF is involved as a partner. In 2021, BASF also acquired almost half of the shares in the Hollandse Kust Zuid offshore wind farm in the Dutch North Sea.

"BASF is keeping its word and remains on track with its transformation. With the investment in Nordlicht 1 and 2, we will now have the necessary amounts of renewable energy to implement the next steps of the transformation in Europe and especially at our largest site in Ludwigshafen," said Martin Brudermüller, Chairman of BASF's Board of Executive Directors, welcoming the agreement. Together with Vattenfall, BASF is thus creating the conditions for achieving the company's 2030 target of 25 percent fewer emissions compared to 2018. "Partnerships play a crucial role in transforming European industries, while strengthening competitiveness. We are pleased to deepen our relationship with BASF for yet another important offshore wind project – and that way accelerate the journey to fossil freedom together," adds Anna Borg, President and CEO of Vattenfall.

The Nordlicht wind farm area is located 85 kilometers north of the island of Borkum in the German North Sea and consists of two separate sites: Nordlicht 1 with a capacity of around 980 MW and Nordlicht 2 with around 630 MW. Once fully commissioned, electricity production is expected to total around 6 TWh per year, which is equivalent to the electricity consumption of 1.6 million German households. Subject to the final investment decision, which is expected in 2025, construction of Nordlicht 1 and 2 is scheduled to begin in 2026. The wind farms are expected to be fully operational in 2028.

The parties have agreed not to disclose the financial details of the transaction.

Source: IWR Online, 23 Apr 2024