Chemical and materials giant BASF and Vattenfall, one of Europe’s largest electricity producers, announced today an agreement for BASF to acquire a 49.5% stake in the Hollandse Kust Zuid (HKZ) offshore wind farm from Vattenfall.
With 140 wind turbines and a total installed capacity of 1.5 GW, HKZ is expected to be the largest offshore wind farm in the world when it becomes fully operational in 2023. It will also be the first offshore wind farm ever to be built without price subsidies for the power produced.
BASF will commit approximately €1.6 billion to the wind farm, including contributions for the project’s construction, as well as €0.3 billion for its stake in the project. Offshore construction of the wind farm will start in July 2021.
Utilizing a long-term power purchase agreement (PPA), BASF will acquire electricity from the wind farm to help implement innovative, low-emission technologies at several of its production sites in Europe, including the company’s chemical production site in Belgium, Antwerp Verbund.
Dr. Martin Brudermüller, Chairman of the Board of Executive Directors of BASF SE, said:
“This wind farm will be an important building block to supply our Antwerp Verbund site and other European sites with renewable electricity. It is the first major investment of BASF in facilities for renewable power. With this investment, we are securing significant volumes of electricity from renewable sources for BASF, which is a key element of our transformation towards climate neutrality.”
The announced transaction aligns with BASF’s recently announced climate goals, including its target to reduce greenhouse emissions by 25% by the end of the decade and reach net-zero in Scope 1 and 2 emissions by 2050. The company has identified the development of new technologies to replace fossil fuels-based energy with electricity from renewable sources as the basis for its long-term transition toward net zero CO2 emissions.
The deal also aligns with Vattenfall’s mission to enable fossil-free living within one generation, with major investments being made in renewable energy capacity, and as the company engages with partners to balance the significant investment costs involved.
Anna Borg, President and CEO of Vattenfall, said:
“Vattenfall and BASF share a common objective of phasing out greenhouse gas emissions from our operations. With this cooperation, Vattenfall once more proves that partnerships with industries are a key element to accelerate the European energy transition across sectors. I am particularly proud that we can do this, while at the same time securing the delivery of fossil-free electricity to our Dutch customers.”