Vattenfall to Sell Stake in Offshore Wind Farm Hollandse Kust Zuid
Vattenfall and BASF have agreed the sale of 49.5% of Vattenfall’s offshore wind farm Hollandse Kust Zuid in the Netherlands. Once fully commissioned it will be the largest offshore wind farm in the world and also the first one ever to be built without subsidies for the power produced. 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.
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 EUR 0.3 billion 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 EUR 1.6 billion. 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. 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. 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.
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. BASF has more than 1,500 employees in the Netherlands who develop, produce and sell products for many sectors at various locations.