Vattenfall and BASF are finalising a partnership agreement concerning German offshore wind farms Nordlicht 1 and 2.
The agreed partnership will include a sale of 49% of Vattenfall’s project shares to BASF.
To this end, the two companies have signed a Memorandum of Understanding on the joint project.
Vattenfall intends to use its share of electricity generation to supply customers in Germany with renewable electricity.
BASF will use almost half of the electricity to supply its chemical production sites in Ludwigshafen and other parts of Europe.
The Nordlicht wind farm area is located 85km north of the island of Borkum in the German North Sea and consists of two separate sites.
Nordlicht 1 has a capacity of 980MW and Nordlicht 2 has a capacity of 630MW.
Vattenfall is developing and will construct the projects.
The contract is expected to be signed in the first half of 2024.
Subject to a final investment decision, which is expected in 2025, construction of Nordlicht 1 and 2 may begin in 2026 and they will be fully operational in 2028.
Chairman of the board of executive directors of BASF Martin Brudermüller (pictured left) said: “For our transformation to net zero emissions, we need large quantities of renewable electricity at competitive prices.
“Together with our long-standing partner Vattenfall, we want to set another milestone with this project to secure sufficient renewable electricity for BASF – in Europe, in Germany and for Ludwigshafen, our largest production site worldwide.
“With the electricity from Northern Lights 1 and 2, we can drive our transformation and further reduce our CO2 emissions.”
Vattenfall chief executive Anna Borg (pictured right) added: “I am proud that Nordlicht 1 and 2 will supply customers in Germany with fossil-free electricity, thus contributing to the decarbonization of industry in Europe.
“BASF is a strong partner with ambitious sustainability goals, and we look forward to expanding our partnership with them.”
In 2021, BASF acquired a stake in the Vattenfall’s Hollandse Kust Zuid wind farm in the Netherlands.
As part of its shareholding, BASF will receive 49.5% of the electricity from the 1.5GW offshore wind farm.