Vattenfall and BASF to partner on German offshore wind farms
European energy firm Vattenfall and German chemical firm BASF are in advanced and exclusive discussions to partner on the Nordlicht 1 and 2 projects through a sale of 49% of the project shares to BASF. Both parties signed a Memorandum of Understanding to formally express their joint ambition.
Vattenfall will use its share of the fossil free electricity to supply its German customers. BASF will receive almost half of the produced electricity and supply its chemical production sites across Europe, in particular Ludwigshafen.
The Nordlicht wind park zone is located 85 km north of the island of Borkum in the German North Sea and consists of two separate sites: Nordlicht 1 with a capacity of 980 MW and Nordlicht 2 with 630 MW. Vattenfall develops and constructs the Nordlicht sites. Once fully operational, their combined production is expected to be around 6 terawatt hours (TWh)/year, equal to the electricity consumption of 1.6 million German households.
Signing of the transaction is expected in the first half of 2024. Pending a final investment decision, which is expected in 2025, construction of Nordlicht 1 and 2 will start in 2026. The wind farms are expected to be fully operational in 2028.
Martin Brudermüller, CEO of BASF: “For our transformation to Net Zero, we need large quantities of renewable electric power at competitive prices. Together with our long-standing partner Vattenfall, we want this project to be another milestone in securing sufficient renewable electric power for BASF in Europe, in Germany, and Ludwigshafen, our largest production site worldwide. With the electric power from Nordlicht 1 and 2, we can drive forward our transformation and further reduce our CO2 emissions.”
Anna Borg, CEO of Vattenfall: “Wind energy is crucial to enable the fossil freedom that drives society forward. And a close collaboration with industries is just as crucial for accelerating the energy transition. I’m proud that Nordlicht 1 and 2 will provide German customers with fossil-free electricity as well as contribute to the decarbonisation of industry in Europe. BASF is a strong partner with ambitious sustainability goals, and we look forward to expanding our partnership with them.”
It is the second time BASF plans to acquire a stake in one of Vattenfall’s offshore wind farms. In 2021, BASF bought a share of the recently inaugurated Hollandse Kust Zuid wind farm in the Netherlands, currently the largest offshore wind farm in the world. Through its ownership BASF receives 49.5% of the electricity from this 1.5 gigawatt offshore wind farm.
