Vattenfall and BASF Strengthen Renewable Energy Partnership with Nordlicht Wind Farm Deal

Vattenfall and BASF Strengthen Renewable Energy Partnership with Nordlicht Wind Farm Deal

(IN BRIEF) Vattenfall and BASF have finalized an agreement for the sale of 49 percent of Vattenfall’s Nordlicht 1 and 2 wind farms to BASF, deepening their collaboration in renewable energy. Nordlicht, Vattenfall’s largest offshore wind project to date, is being constructed in the German North Sea without state subsidies and will have a total installed capacity of 1.6 gigawatts. BASF’s investment in Nordlicht aligns with its sustainability goals, providing renewable energy for its chemical production sites in Europe, particularly in Ludwigshafen. With this partnership, both companies aim to accelerate the transition to fossil-free energy and contribute to European industry transformation. The Nordlicht wind farms are expected to be fully operational by 2028, generating around 6 terawatt hours per year, equivalent to the electricity consumption of 1.6 million German households. Financial details of the transaction remain undisclosed.

(PRESS RELEASE) STOCKHOLM, 23-Apr-2024 — /EuropaWire/ — Vattenfall and BASF have agreed the sale of 49 percent of Vattenfall’s Nordlicht 1 and 2 wind farms to BASF. The two companies are thus deepening their partnership in the field of renewable energy.

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. The Nordlicht wind project is being built in the German North Sea without state subsidies and, with a total installed capacity of 1.6 gigawatts, will be the largest offshore wind farm project in realization for Vattenfall to date.

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.

“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,” says Martin Brudermüller, Chairman of the Board of Executive Directors of BASF.

“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, ” says Anna Borg, President and CEO of Vattenfall.

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 980 megawatts and Nordlicht 2 with around 630 megawatts. Once fully operational, electricity production is expected to total around 6 terawatt hours (TWh) per year, which is equivalent to the electricity consumption of 1.6 million German households. 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.

The parties have agreed not to disclose the financial details of the transaction.

About BASF

Chemistry for a sustainable future, that’s what BASF stands for. We combine economic success with the protection of the environment and social responsibility. Around 112,000 employees in the BASF Group contribute to the success of our customers from almost all industries and in almost every country in the world. Our portfolio comprises six segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care and Agricultural Solutions. BASF generated sales of €68.9 billion worldwide in 2023. BASF shares are traded on the Frankfurt Stock Exchange (BAS) and as American Depositary Receipts (BASFY) in the United States. For more information, see www.basf.com.

About Vattenfall

Vattenfall is a leading European energy company that has been driving the electrification of industry, powering homes and modernising people’s lifestyles through innovation and collaboration for more than 100 years. Our goal is fossil freedom – a future where we enable everyone to live, move and produce things fossil-free. Across our value chain, we aim to achieve net-zero emissions by 2040. We employ around 21,000 people across the Group, have around 14 million customers and operate mainly in Sweden, Germany, the Netherlands, Denmark and the UK. Vattenfall is wholly owned by the Swedish state. Further information: Vattenfall – We are working on fossil freedom

Media Contacts:

Lutz Wiese
Vattenfall Media Relations
+49 173 626 38 82
lutz.wise@vattenfall.de

Thomas Nonnast
BASF Corporate Media Relations
+49 173 626 86 27
Thomas.nonnast@basf.com

SOURCE: Vattenfall AB