Allianz Capital Partners, on behalf of Allianz Insurance Companies, has signed an agreement to purchase a 25.2 per cent stake in the 1.5 GW Hollandse Kust Zuid wind farm offshore the Netherlands from the chemicals producer BASF.
This is the first offshore wind and first equity renewables investment of Allianz in the Netherlands, the global insurer and asset manager said.
The wind farm is being developed and is majority-owned by Vattenfall.
Once fully operational, the subsidy-free Hollandse Kust Zuid will be the largest offshore wind farm in the world with 140 wind turbines and a total installed capacity of 1.5 GW.
The project is located in the North Sea, offshore of the coast of Noordwijk in the Netherlands which is 30 kilometres away from The Hague.
Construction works for the wind farm have already started, and the project is expected to become fully operational in 2023.
As agreed in a long-term fixed-price corporate power purchasing agreement BASF will receive most of the power originating from the overall 49.5 per cent share of Allianz and BASF in Hollandse Kust Zuid.
”We are delighted about our first offshore wind investment and our first renewables investment in the Netherlands. We look forward to supporting jointly with our partners this ambitious project which will play a major role in the green energy supply of Europe. With this investment we will further drive the energy transition towards renewables,” said Carsten Quitter, Group CIO of Allianz.
The transaction is subject to merger control approvals and is expected to close in the first quarter of 2022.
”We are very pleased to be partnering with BASF with regards to this opportunity. BASF is providing a long-term fixed-price power purchasing agreement for the project which will ensure a strong contracted revenue stream for many years to come,” said Andrew Cox, Co-Head of Infrastructure at Allianz Capital Partners.