Vattenfall, BASF sign major offshore wind farm deal in German North Sea

Vattenfall and BASF have entered into a significant agreement whereby BASF will acquire 49% of Vattenfall‘s Nordlicht 1 and 2 wind farms. These wind farms are currently under development in the German North Sea and represent a major step forward in renewable energy deployment, with a total capacity of 1.6 gigawatts. This makes Nordlicht the largest offshore wind farm project currently being realized by Vattenfall.

The Nordlicht wind project is notably being constructed without state subsidies, underscoring the financial viability and environmental importance of renewable energy projects. Vattenfall will retain a majority stake and manage the development and construction of the Nordlicht sites, planning to use its share of the electricity generated to provide fossil-free power to its customers in Germany. Conversely, BASF will utilize its 49% share to support its chemical production sites across Europe, particularly in Ludwigshafen, which is part of its broader strategy to reduce emissions and transform its operations sustainably.

This partnership is not the first between the two giants; BASF previously acquired almost half of the shares in the Hollandse Kust Zuid offshore wind farm in 2021, also located in the North Sea. Martin Brudermüller, Chairman of the Board of Executive Directors of BASF, stated, “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.” This move aligns with BASF’s goal to cut its scope 1 and 2 emissions by 25% by 2030 compared to 2018 levels.

Anna Borg, President and CEO of Vattenfall, emphasized the critical role of offshore wind energy in the European energy transition, highlighting its potential to substantially replace fossil fuels. “Partnerships play a crucial role in transforming European industries while strengthening competitiveness,” Borg said. The ongoing collaboration on Nordlicht underscores the shared commitment to accelerating the journey towards a fossil-free future.

Located approximately 85 kilometers north of the island of Borkum, Nordlicht consists of two sites: Nordlicht 1 with about 980 megawatts capacity and Nordlicht 2 with approximately 630 megawatts. Once operational, the project is expected to generate around 6 terawatt hours annually—enough to power approximately 1.6 million German households. Construction is set to commence in 2026, following a final investment decision expected in 2025, with the wind farms projected to be fully operational by 2028.

This deal underscores the significant strides being made in the renewable energy sector, with major corporations like Vattenfall and BASF leading the charge towards a more sustainable and energy-independent Europe.

The partnership between Vattenfall and BASF in the Nordlicht project exemplifies how strategic collaborations can effectively drive the renewable energy sector forward, leveraging significant corporate investments in sustainable infrastructure that are critical for achieving long-term environmental goals.