BASF purchases German North Sea wind farms from Vattenfall to charge green chemical production

26 Apr 2024 --- BASF and Swedish energy provider Vattenfall settle the sale of 49% of Vattenfall’s Nordlicht 1 and 2 wind farms to BASF, which will use the secured share of electricity to supply its chemical production sites in Europe, especially in Ludwigshafen, Germany. 

The Nordlicht wind project is under construction in the German North Sea without state subsidies. It will be Vattenfall’s largest offshore wind farm project to date, with a total installed capacity of 1.6 gigawatts.

The parties will not disclose further financial details about the transaction but BASF says the deal keeps the company on track with transformation plans:

“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, especially at our largest site in Ludwigshafen,” comments Martin Brudermüller, chairman of the Board of Executive Directors at BASF.

“Together with our long-standing partner Vattenfall, we are creating the conditions for achieving our 2030 target of reducing our scope 1 and 2 emissions by 25% compared to 2018.”

Scaling wind energy
The Nordlicht wind farm area is located 85 kilometers 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 six terawatt hours per year, which is equivalent to the electricity consumption of 1.6 million German households. 

Vattenfall’s main markets are Sweden, Germany, the Netherlands, Denmark and the UK. Its parent company, The Vattenfall Group, is owned entirely by the Swedish state with headquarters in Solna, Sweden.

Subject to the final investment decision, which is expected next year, construction of Nordlicht 1 and 2 is expected to begin in 2026. The wind farms are expected to be fully operational in 2028.

Nordlicht is Vattenfall’s second major offshore wind project with BASF as a partner.Nordlicht is Vattenfall’s second major offshore wind project with BASF as a partner. Three years ago, BASF acquired almost half of the shares in the Hollandse Kust Zuid offshore wind farm in the Dutch North Sea.

Vattenfall is responsible for developing and constructing the Nordlicht sites and intends to use its share of future electricity generation to supply customers in Germany with fossil-free electricity. 

“Offshore wind energy is an essential contributor to the energy transition in Europe and is expected to replace fossil fuels on a large scale,” says Anna Borg, president and CEO of Vattenfall.

“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, in this way, accelerate the journey to fossil freedom together.”

BASF green chemical activities
BASF’s Personal Care business segment recently collected four beauty ingredient innovation awards at In-cosmetics Global. Personal Care Insights reported live from the event, speaking to the German supplier on its latest sustainable beauty industry advances recognized at the trade fair in Paris, France.

In moves to bolster transparency across the supply chain, BASF recently introduced a new digital service within the platform, called “Ingredients Revealed,” which enables developers of personal care products to easily identify ingredients and formulations with specific criteria like sustainability information, standards and labels.

By Benjamin Ferrer