The Netherlands: Green Energy BASF to Acquire 49.5 % of Offshore Wind Farm Hollandse Kust Zuid
Under an agreement signed between BASF and Vattenfall, BASF will purchase 49.5 % of Vattenfall’s wind farm Hollands Kust Zuid in the Netherlands. Claimed to be the world’s largest offshore wind farm once commissioned, the project is also the first offshore wind farm to be built without subsidies for the power produced.
Stockholm/Sweden – BASF and Vattenfall have signed a contract for the purchase of 49.5 % of Vattenfall’s wind farm Hollands Kust Zuid by BASF. The purchase price amounts to 0.36 billion dollars and takes into account the achieved status of the project. Including BASF’s contribution to fund the wind farm construction, BASF’s total commitment amounts to around 1.9 billion dollars. Closing of the transaction is expected in the fourth quarter of 2021, subject to the approval of the relevant authorities.
Offshore construction of the wind farm will start in July 2021. The Hollandse Kust Zuid wind farm will also be the first fully merchant offshore wind farm in the world which does not receive any price subsidies for the power produced. The project is expected to become fully operational in 2023. A significant part of the electricity production of HKZ is reserved for Vattenfall’s Dutch customers.
Once fully operational, the wind farm will be the largest offshore wind farm in the world with 140 wind turbines and a total installed capacity of 1.5 Gigawatt.
BASF is acquiring the electricity from the wind farm for its ownership share through a long-term power purchase agreement. It will enable BASF to implement innovative, low-emission technologies at several of its production sites in Europe. BASF’s Antwerp Verbund site will benefit from the renewable power to a significant extent. The BASF Antwerp site is the largest chemical production site in Belgium and the second largest BASF Group site worldwide.
The supply scheme to other BASF sites in Europe will depend on the further development of the respective regulation for renewable energy. The wind farm will also support the Netherlands in reaching its target share of renewable power generation and greenhouse gas reduction targets.
“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,” said Dr. Martin Brudermüller, Chairman of the Board of Executive Directors of BASF.
“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,” said Anna Borg, President and CEO of Vattenfall.