German chemicals company BASF is in advanced and exclusive talks and has entered a memorandum of understanding with Vattenfall to acquire a 49% stake in Nordlicht 1 and 2, two German offshore wind farms with a total capacity of 1.6GW.
Nordlicht 1 and 2 will have capacities of 980MW and 630MW, respectively. The wind farms will be located in the Nordlicht wind park zone, 85km north of the island of Borkum in the German North Sea.
Vattenfall secured the rights to develop the Nordlicht 2 wind farm in September 2023.
The two wind farms will generate 6TWh of clean energy annually, enough to power 1.6 million German homes.
Vattenfall and BASF will sign the deal in the first half of 2024.
Subject to a final investment decision anticipated in 2025, construction could then begin in 2026. The wind farms are scheduled to begin operations in 2028.
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BASF plans to use its share of the electricity to power its chemical production sites across Europe, particularly in Ludwigshafen, Germany.
Vattenfall will supply its share of electricity to customers in Germany.
BASF CEO Martin Brudermüller stated: “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 in 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.”
Vattenfall CEO Anna Borg stated: “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 am 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.”
This is the second time that BASF has sought to buy a stake in one of Vattenfall’s projects.
In June 2021, the company acquired a 49.5% stake in the Dutch offshore wind farm Hollandse Kust Zuid.