Vattenfall has agreed the sale of a 49% stake in its Nordlicht 1 and 2 wind farms to chemical giant BASF.
The Nordlicht wind project is being built in the German North Sea without state subsidies and, with a total installed capacity of 1.6GW, will be the largest offshore wind farm project in realization for Vattenfall to date.
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 980MW and Nordlicht 2 with around 630MW.
Once fully operational, electricity production is expected to total around 6TWh per year, which is equivalent to the electricity consumption of 1.6 million German households.
Vattenfall is responsible to develop and construct 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.
Nordlicht 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.
Martin Brudermüller, chairman of the board of executive directors of BASF, 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.”
Anna Borg, president and chief executive of Vattenfall, said: “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.”
The parties have agreed not to disclose the financial details of the transaction.
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.