Vattenfall and BASF Deepen Offshore Wind Farm Partnership Ties

Business & Finance

April 22, 2024, by Adnan Durakovic

Vattenfall and BASF have agreed the sale of 49 per cent of Vattenfall’s Nordlicht 1 and 2 wind farms to BASF.

Nordlicht is Vattenfall’s second major offshore wind project in which BASF is participating as a partner. In 2021, BASF acquired almost half of the shares in the Hollandse Kust Zuid offshore wind farm in the Dutch North Sea.

The Nordlicht wind project is being built in the German North Sea without state subsidies and, with a total installed capacity of 1.6 GW, will be the largest offshore wind farm project in realization for Vattenfall to date.

Vattenfall is responsible for the development and construction of the Nordlicht sites and intends to use its share of future electricity generation to supply customers in Germany with fossil-free electricity. BASF will use their share to supply its chemical production sites in Europe, especially in Ludwigshafen.

”BASF is keeping its word and remains on track with its transformation. 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 and especially at our largest site in Ludwigshafen. Together with our long-standing partner Vattenfall, we are creating the conditions for achieving our 2030 targets of 25% less emissions compared to 2018,” said Martin Brudermüller, Chairman of the Board of Executive Directors of BASF.

The Nordlicht wind farm area is located 85 kilometres north of the island of Borkum in the German North Sea and consists of two separate sites: Nordlicht 1 with a capacity of around 980 MW and Nordlicht 2 with around 630 MW.

Once fully operational, electricity production is expected to total around 6 terawatt hours (TWh) per year, which is equivalent to the electricity consumption of 1.6 million German households. Subject to the final investment decision, which is expected in 2025, construction of Nordlicht 1 and 2 is expected to begin in 2026. The wind farms are expected to be fully operational in 2028.

”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 that way accelerate the journey to fossil freedom together,” said Anna Borg, President and CEO of Vattenfall.

The parties have agreed not to disclose the financial details of the transaction.