Vattenfall and BASF Plan Partnership for German Offshore Wind Farms Nordlicht 1 and 2

Strategic Insights -

Vattenfall, the Swedish state-owned multinational power company, and BASF SE, the German chemical company, are engaged in exclusive discussions to partner on the Nordlicht 1 and 2 offshore wind projects in Germany. The collaboration, which is set to involve a sale of 49% of the project shares to BASF, aims to supply Vattenfall's German customers with fossil-free electricity, while BASF will receive nearly half of the produced electricity for its chemical production sites across Europe. The Nordlicht wind park zone, located 85 km north of the island of Borkum in the German North Sea, comprises two wind farms with a combined capacity of 1.61 GW and is expected to produce 6 TWh of electricity annually, meeting the needs of 1.6 million German households.

Key Takeaways:

  • Vattenfall and BASF are in advanced discussions to partner on the Nordlicht 1 and 2 offshore wind projects in Germany.
  • The collaboration involves a sale of 49% of the project shares to BASF and is expected to supply Vattenfall's German customers with fossil-free electricity.
  • BASF will receive 49.5% of the electricity from the Nordlicht 1 and 2 wind farms for its chemical production sites across Europe.
  • The Nordlicht wind park zone comprises two wind farms with a combined capacity of 1.61 GW and is expected to produce 6 TWh of electricity annually.
  • The collaboration marks BASF's second investment in Vattenfall's offshore wind ventures, following its acquisition of a share in the Hollandse Kust Zuid wind farm in the Netherlands in 2021.
  • The construction of the Nordlicht wind farms is expected to begin in 2026, with a final investment decision planned for 2025, with the wind farms projected to be fully operational by 2028.
  • The partnership is expected to generate significant economic benefits for both companies, including creating jobs and stimulating local economies.
  • The Nordlicht wind farms are located 85 km north of the island of Borkum in the German North Sea, making them a valuable source of renewable energy for the region.

Statistics:

  • The combined capacity of the Nordlicht 1 and 2 wind farms is 1.61 GW.
  • The Nordlicht 1 wind farm has a capacity of 980 MW, while the Nordlicht 2 wind farm has a capacity of 630 MW.
  • The Nordlicht wind parks are expected to produce 6 TWh of electricity annually, which is equivalent to the electricity needs of 1.6 million German households.
  • The construction of the Nordlicht wind farms is expected to begin in 2026, with a final investment decision planned for 2025.
  • The wind farms are projected to be fully operational by 2028.

Sources:

  • M2 Communications, "Vattenfall and BASF plan partnership for German offshore wind farms Nordlicht 1 and 2" (December 5, 2023)