Vattenfall and BASF are in exclusive discussions to partner on the Nordlicht 1 and 2 offshore wind farms in Germany through a sale of 49 per cent of the project shares to BASF. To formally express their joint ambition, the two companies have signed a Memorandum of Understanding (MoU).
The signing of the transaction is expected in the first half of 2024.
“Together with our long-standing partner Vattenfall, we want this project to be another milestone in securing sufficient renewable electric power for BASF in Europe, in Germany, and Ludwigshafen, our largest production site worldwide. With the electric power from Nordlicht 1 and 2, we can drive forward our transformation and further reduce our CO 2 emissions,” said Martin Brudermüller , CEO of BASF.
Vattenfall will use its share of the fossil-free electricity to supply its German customers while BASF will receive almost half of the produced electricity and supply its chemical production sites across Europe, in particular Ludwigshafen.
The first Northern Light project, the 980 MW Nordlicht 2 , will be built at the N-7.2 offshore wind site, for which Vattenfall had the right of entry and exercised the right after RWE won the tender.
The 630 MW Nordlicht 2 will be built in the N-6.6 area, located around 85 kilometres north of Borkum Island. Vattenfall also had the right of entry to this site and exercised the right after RWE won the tender.
With a total installed capacity of 1,610 MW, the two Nordlicht offshore wind farms will be able to produce enough electricity to meet the annual requirements of more than 1.6 million average German households.
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Pending a final investment decision, which is expected in 2025, construction of Nordlicht 1 and 2 is planned to start in 2026 while the wind farms are expected to be fully operational in 2028.
“Wind energy is crucial to enable the fossil freedom that drives society forward. And a close collaboration with industries is just as crucial for accelerating the energy transition,” said Anna Borg , CEO of Vattenfall.
This is the second time BASF plans to acquire a stake in one of Vattenfall’s offshore wind farms. In 2021, the company bought a share of the recently inaugurated Hollandse Kust Zuid offshore wind farm in the Netherlands.
Through its ownership, BASF receives 49.5 per cent of the electricity from this 1.5 GW offshore wind farm.