BASF and Vattenfall have signed an agreement for the purchase of 49.5 % of Vattenfall’s wind farm Hollandse Kust Zuid (HKZ), the Netherlands, by BASF. The purchase price amounts to €0.3 billion and takes into account the achieved status of the project. Including BASF’s contribution to the fund the wind farm construction, BASF’s total commitment amounts to approximately €1.6 billion. The transaction is expected to close in the fourth quarter of 2021, subject to approval by the relevant authorities. Offshore construction of the wind farm will start in July 2021.
Once fully operational, the wind farm will be the world’s largest offshore wind farm with 140 wind turbines and a total installed capacity of 1.5 gigawatts. It will also be the world’s first fully commercial offshore wind farm that does not receive price subsidies for the power produced. The project is expected to be fully operational in 2023. A significant part of the electricity produced is reserved for Vattenfall’s Dutch customers.
BASF’s Antwerp Verbund site will benefit significantly from the renewable power. It is the largest chemical production site in Belgium and the second largest BASF Group site worldwide. The supply to other BASF sites in Europe will depend on the further development of the respective regulation for renewable energy.
BASF aims to reduce its greenhouse gas emissions by 25 % by 2030 and achieve net-zero emissions by 2050. An important lever to further reduce emissions is the replacement of fossil-generated electricity with fossil-free electricity. BASF will secure the required amounts of renewable power through a “make and buy” approach. This includes the intention to bring in financial co-investors to this project allowing for an efficient use of capital.