Swedish energy giant Vattenfall has finalised the sale of a 49% stake in its Nordlicht 1 and 2 offshore wind farms to German chemical company BASF.
The wind farms will be located in the Nordlicht wind park zone, 85km north of the island of Borkum in the German North Sea.
Nordlicht 1 and 2 will have capacities of 980MW and 630MW, respectively.
The Nordlicht project is set to become Vattenfall's largest offshore wind farm project, boasting a total installed capacity of 1.6GW.
These two wind farms are projected to generate around 6TWh of electricity annually, sufficient to power 1.6 million German households.
Vattenfall will oversee the development and construction of the Nordlicht sites, and plans to utilise its share of the electricity produced to supply German customers with renewable energy.
BASF aims to use its share to power its chemical production sites across Europe, particularly in Ludwigshafen.
BASF board of executive directors chairman Martin Brudermüller 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.”
Vattenfall president and CEO Anna Borg 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 financial terms of the Nordlicht stake sale have not been disclosed by the parties involved.
The commencement of construction for Nordlicht 1 and 2 is contingent on the final investment decision, anticipated in 2025, with the start of construction expected in 2026.
The wind farms are due to become fully operational by 2028.
BASF first entered into exclusive negotiations and signed a memorandum of understanding with Vattenfall for the acquisition of the stake in these wind farms in December last year.
This transaction marks the second significant collaboration between the two companies in offshore wind projects, following BASF's acquisition of nearly half of the stake in the Hollandse Kust Zuid wind farm in the Dutch North Sea in 2021.
