Vattenfall has signed a power purchase agreement (PPA) with the chemicals group LyondellBasell (LYB) to provide it with fossil free electricity from the Nordlicht 1 offshore wind farm off the German coast.
The agreement includes the supply of electricity from the Nordlicht 1 offshore wind farm over a period for 15 years, starting in 2028.
LYB will then purchase around 450 GW hours of electricity per year for plastics production - equivalent to the annual electricity consumption of around 128,500 German households.
Vattenfall is currently developing the Nordlicht 1 wind farm, which is still pending a final investment decision.
The offshore wind farm is located around 85 kilometres north of the island of Borkum in the German North Sea. It will have a total output of 980 MW from 68 wind turbines.
The project is due to be completed and connected to the grid in 2028. Vattenfall holds 51% of the shares, while BASF owns 49%. Vattenfall plans to use its share of future electricity generation to supply customers in Germany with fossil free energy.
“With this electricity partnership with LYB, we at Vattenfall are sending a strong signal for our long-term strategy: We do not only want to decarbonize ourselves, but we also support our suppliers, partners and customers in leading a life without fossil fuels,” said Martijn Hagens, Head of Markets at Vattenfall.