GERMANY – German chemicals group BASF is in talks with Swedish state-owned utility Vattenfall AB to acquire a 49% stake in its 1.61-GW Nordlicht offshore wind complex which is under development in the German North Sea.
Both parties have formalized their shared aspirations by signing a Memorandum of Understanding.
Vattenfall intends to allocate its portion of fossil-free electricity to serve its customer base in Germany. Meanwhile, BASF anticipates receiving nearly half of the generated electricity, supplying it to its chemical production facilities across Europe, notably Ludwigshafen.
The Nordlicht wind park zone, situated 85 kilometers north of the island of Borkum in the German North Sea, encompasses two distinct sites: Nordlicht 1, boasting a capacity of 980 megawatts, and Nordlicht 2, with 630 megawatts.
Vattenfall spearheads the development and construction of the Nordlicht sites. Upon reaching full operational capacity, these sites are estimated to produce approximately 6 terawatt hours (TWh) annually, equivalent to the power consumption of 1.6 million German households.
The transaction signing is projected to occur in the first half of 2024. Pending a final investment decision, anticipated in 2025, construction of Nordlicht 1 and 2 is scheduled to commence in 2026. The wind farms aim to achieve full operational status by 2028.
Martin Brudermüller, CEO of BASF, remarked, “For our transition to Net Zero, substantial quantities of competitive renewable electric power are imperative.
“In collaboration with our steadfast partner Vattenfall, we envision this project as a significant milestone in securing ample renewable electric power for BASF across Europe, particularly in Germany and Ludwigshafen, our largest global production site.
“Through the electric power sourced from Nordlicht 1 and 2, we are poised to propel our transformation and further curtail our CO2 emissions.”
Anna Borg, CEO of Vattenfall, added, “Wind energy plays a pivotal role in facilitating the transition to fossil freedom, a driving force for societal progress. Collaborating closely with industries is equally essential to expedite the energy transition.
“I take pride in Nordlicht 1 and 2, which will furnish German customers with fossil-free electricity and contribute substantially to industry decarbonization in Europe.
“BASF stands as a formidable partner with ambitious sustainability objectives, and we eagerly anticipate broadening our collaboration with them.”
This marks the second instance of BASF’s intention to acquire a stake in one of Vattenfall’s offshore wind farms.
In 2021, BASF acquired a share in the recently launched Hollandse Kust Zuid wind farm in The Netherlands, presently the world’s largest offshore wind farm. Through this ownership, BASF secures 49.5% of the electricity generated by this 1.5 gigawatt offshore wind farm.
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