Vattenfall and BASF have advanced discussions to partner on Nordlicht 1 and 2 through a 49% sale of the project’s shares to BASF.
Both parties signed a MOU to formally express their joint intention. Vattenfall will use its electricity share to supply its German customers. BASF will receive almost half of the produced electricity and intends to supply its chemical production sites across Europe, particularly Ludwigshafen.
The Nordlicht wind park zone is located 85 km north of Borkum Island in the German North Sea and consists of Nordlicht 1, with a 980 MW capacity, and Nordlicht 2, with 630 MW. Vattenfall develops and constructs the Nordlicht sites.
Once fully operational, their combined production is expected to be around 6 TWh per year, equal to the electricity consumption of 1.6 million German households, says Vattenfall.
Transaction signing is expected in the first half of next year. Pending a final investment decision, expected in 2025, construction of Nordlicht 1 and 2 will start in 2026. The wind farms are expected to be fully operational in 2028.
“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,” says Martin Brudermüller, CEO of BASF. “With the electric power from Nordlicht 1 and 2, we can drive forward our transformation and further reduce our CO2 emissions.”
“A close collaboration with industries is just as crucial for accelerating the energy transition,” adds Anna Borg, CEO of Vattenfall. “I’m proud that Nordlicht 1 and 2 will provide German customers with fossil-free electricity as well as contribute 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.”
It is the second time BASF plans to acquire a stake in one of Vattenfall’s offshore wind farms. In 2021, BASF bought a share of the recently inaugurated Hollandse Kust Zuid wind farm in Netherlands. Through its ownership, BASF receives 49.5% of the electricity from this 1.5 GW offshore wind farm.
