Swedish energy firm Vattenfall has reached the final investment decision (FID) for its Nordlicht 1 and 2 offshore wind farms, to be developed 85km north of Borkum, Germany.

The wind farms will have a combined capacity of more than 1.6GW. Construction is set to begin in 2026, with commissioning in 2028.

The Nordlicht 1 project will have a capacity of 980MW, while Nordlicht 2 will have 630MW.

The investment also includes a deal with BASF, which will repurchase shares in the Nordlicht cluster that it acquired in 2024.

BASF will also secure long-term access to renewable electricity for its chemical production in Europe, ensuring a steady supply amid growing energy demand.

This agreement will help BASF meet its renewable energy needs when additional supply is required.

The two wind farms are expected to generate 6 terawatt hours (TWh) of electricity annually.

As part of Vattenfall’s sustainability efforts, both wind farms will incorporate wind turbine towers made with low-emission steel, cutting the overall carbon footprint by 16%.

However, the final investment decision for Nordlicht 2 remains conditional, pending the necessary permit approval.

Vattenfall wind business area head Helene Biström stated: “The Nordlicht offshore wind cluster makes a significant milestone in the path to enabling fossil freedom.

“By accelerating Germany’s energy transition and supporting industrial decarbonisation, it will provide clean, reliable energy while driving innovation and sustainability in the sector.

“We look forward to realising this important project in close collaboration with our supply chain partners.”

In June 2024, Vestas received a contract from Vattenfall and BASF to supply its wind turbines to the Nordlicht 1 and 2 projects.