The Netherlands – Vattenfall and BASF have agreed to sell 49.5 percent of Vattenfall’s Hollandse Kust Zuid (HKZ) offshore wind farm in the Netherlands.
When completed, it will be the largest offshore wind farm in the world, as well as the first to be developed without any subsidies for the power generated. Vattenfall will use Hollandse Kust Zuid to supply fossil free electricity to its customers in the Netherlands. BASF will use its electricity share to support chemical production in sites across Europe.
Transaction closing in Q4
BASF and Vattenfall have reached an agreement for BASF to purchase 49.5 percent of Vattenfall’s wind farm Hollands Kust Zuid. The acquisition price is €0.3 billion, which takes into account the project’s completed condition. BASF’s entire investment, including its contribution to wind farm construction, is estimated to be around €1.6 billion. The transaction is scheduled to close in the fourth quarter of 2021, subject to regulatory approval.
Largest wind farm in the world
The wind farm’s offshore construction will begin in July 2021. When 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 Gigawatt. The Hollandse Kust Zuid wind farm will also be the world’s first totally commercial offshore wind farm, with no price subsidies for the power generated. The project is scheduled to be completed in 2023. HKZ reserves a major portion of its electricity production for Vattenfall’s Dutch consumers.
Through a long-term power purchase agreement, BASF is obtaining electricity from the wind farm in exchange for its ownership stake. It will allow BASF to adopt innovative, low-emission solutions at several of its European manufacturing sites. BASF’s Antwerp Verbund plant will benefit significantly from renewable energy. The BASF Antwerp plant is Belgium’s largest chemical production site and the world’s second largest BASF Group site.
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. BASF has more than 1,500 employees in the Netherlands who develop, produce and sell products for many sectors at various locations.