The sale will deepen the partnership between the two companies in the field of renewable energy and provide fossil-free electric power for Vattenfall customers in Germany and BASF’s production site in Ludwigshafen
BASF CEO Martin Brudermüller and Vattenfall CEO Anna Borg signed the agreement. (Credit: BASF SE)
Swedish power company Vattenfall has agreed to divest a 49% stake in its Nordlicht 1 and 2 offshore wind farms to Germany-based chemicals producer BASF.
The Nordlicht wind farm area is located 85km north of the island of Borkum in the German North Sea, with a total installed capacity of 1.6GW, without involving any state subsidies.
It is said to be Vattenfall’s largest offshore wind farm project and comprises two separate sites, Nordlicht 1 with around 980MW capacity and Nordlicht 2 with around 630MW.
Vattenfall will develop and construct the Nordlicht sites and plans to use its share of future electricity generation to supply customers in Germany with green electricity.
BASF will use its 49% share of green electricity to power its chemical production sites in Europe, especially in Ludwigshafen.
BASF board of executive directors chairman Martin Brudermüller said: “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, especially at our largest site in Ludwigshafen.
“Together with our long-standing partner Vattenfall, we are creating the conditions for achieving our 2030 target of reducing our scope 1 and 2 emissions by 25% compared to 2018.”
Nordlicht is Vattenfall’s second major offshore wind project in which BASF is a partner.
In 2021, BASF acquired almost half of the shares in the Hollandse Kust Zuid offshore wind farm in the Dutch North Sea.
Once fully operational, produce is expected to total around 6TWh per annum of clean electricity, which is equivalent to the electricity consumption of 1.6 million German households.
The construction of Nordlicht 1 and 2 is expected to begin in 2026 and will be fully operational in 2028, subject to the final investment decision, which is expected in 2025.
Vattenfall president and CEO Anna Borg said: “Offshore wind energy is an essential contributor to the energy transition in Europe and is expected to replace fossil fuels on a large scale.
“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 in this way accelerate the journey to fossil freedom together.”