Vattenfall and BASF have agreed the sale of 49% of Vattenfall's Nordlicht 1 and 2 wind farms to BASF, deepening their partnership in the field of renewable energy.
Nordlicht, located offshore Germany, is already 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 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 its share to supply its chemical production sites in Europe, especially in Ludwigshafen, the company said.
"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.
“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,” added Anna Borg, President and CEO of Vattenfall.
The Nordlicht wind farm area is located 85 kilometers 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 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.