BASF seals deal to buy into gigascale Vattenfall offshore wind to power chemicals complex

Chemicals giant to buy almost half of 1.6GW Nordlicht 1 and 2 offshore wind projects in the German North Sea

BASF chairman Martin Brudermüller (l) and Vattenfall CEO Anna Borg (r).
BASF chairman Martin Brudermüller (l) and Vattenfall CEO Anna Borg (r).Foto: Vattenfall

BASF has agreed to buy 49% of Vattenfall’s Nordlicht 1 and 2 offshore wind projects in the North Sea for an undisclosed amount and intends to use its share from the power it produces for its giant chemicals power complex in Ludwigshafen, Germany.

The two companies in December already had revealed that they are in advanced discussions about the deal on the 980MW Nordlicht 1 and the 630MW Nordlicht 2 sites, which are located 85 kilometres north of the German Island of Borkum.

“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,” BASF chairman Martin Brudermüller said.

“Together with our long-standing partner Vattenfall, we are creating the conditions for achieving our 2030 targets of 25% less emissions compared to 2018."

Nordlicht is already the second offshore wind project on which the chemicals giant and the Swedish utility are partnering. BASF in 2021 had bought almost half of the Hollandse Kust Zuid (South) offshore wind farm in the Dutch North Sea from Vattenfall. The company little later also signed a deal to buy the power output of part of Orsted's Borkum Riffgrund 3 project in Germany as part of a power purchase agreement (PPA).

Once fully operational, electricity production is expected to reach around 6TWh per year, which is equivalent to the electricity consumption of 1.6 million German households.

Streamcracker at BASF chemicals site in Ludwigshafen, Germany.Foto: BASF SE

A final final investment decision is expected in next year, with construction of Nordlicht 1 and 2 slated to start 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,” Vattenfall CEO Anna Borg said.

“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.”

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Published 22 April 2024, 13:15Updated 22 April 2024, 13:15
EuropeGermanyBASFVattenfall