BASF to acquire 49.5% stake in Vattenfall's Hollandse Kust Zuid offshore wind farm

● It will be the largest offshore wind farm in the world upon completion

● First unsubsidized offshore wind farm

● Vattenfall to supply non-fossil fuel electricity to its customers in the Netherlands from the Hollandse Kust Zuid wind farm; to support chemical production at BASF's European sites

BASF has signed a contract with Vattenfall to acquire a 49.
5% stake in the Vattenfall HollandseKust Zuid (HKZ) wind farm for a price of EUR 300 million based on the progress of the project
.
BASF's total investment is 1.
6 billion euros, including BASF's investment in the construction of the wind farm
.
The transaction is expected to close in the fourth quarter of 2021, subject to approval by the relevant government authorities
.
Construction of the offshore wind farm will start in July 2021
.

When completed and put into operation, 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 GW
.
HKZ will also be the world's first fully commercial offshore wind farm and will not receive any electricity generation price subsidies
.
The farm is expected to be fully operational in 2023
.
Most of the electricity produced by HKZ will be supplied to Vattenfall's customers in the Netherlands
.

BASF is acquiring electricity from the wind farm as its share of ownership through a long-term power purchase agreement
.
This will enable BASF to implement innovative low-emission technologies at several production sites in Europe
.
BASF's integrated site in Antwerp will benefit to a large extent from renewable energy
.
BASF's Antwerp base is the largest chemical production base in Belgium and the second largest production base of the BASF Group in the world
.

Supply plans to other BASF production sites in Europe will depend on further refinement of regulations related to renewable energy
.
The wind farm will also support the Netherlands in achieving its target share of electricity generation from renewable sources and its greenhouse gas reduction targets
.
With more than 1,500 employees in the Netherlands, BASF develops, manufactures and sells products for numerous industries
.

Dr.
Martin Brudermüller, Chairman of the Executive Board of BASF Europe, said: "The wind farm will be an important source of renewable electricity for BASF's integrated site in Antwerp and other European production sites
.
The first major investment, it ensures that BASF has access to a large amount of renewable energy, a key factor in our move towards climate neutrality
.
"

Anna Borg, President and CEO of Vattenfall, said: “Vattenfall is aligned with BASF’s goal of gradually reducing greenhouse gas emissions from its operations
.
Through this collaboration, Vattenfall has once again demonstrated that partnerships with various industries are the key to accelerating the cross-industry transition of energy in Europe.
key factor
.
I am particularly proud that we are working towards this, ensuring that non-fossil fuel electricity is available to our customers in the Netherlands
.
”

Vattenfall's mission is to achieve a life free of fossil fuels within a generation
.
To achieve this goal, the company has increased its investment in renewable energy, of which offshore wind power is an important part
.
The cornerstone of Vattenfall's growth strategy is the search for partners to balance the significant investment costs of future assets
.
Strong investors make investments in renewable energy and low carbon economically viable, supporting Vattenfall to accelerate and drive the transformation of the energy landscape
.

BASF aims to reduce global greenhouse gas emissions by 25% by 2030 compared to 2018 and achieve net zero emissions by 2050
.
A key enabler for this goal is the replacement of fossil fuel electricity with non-fossil fuel electricity
.
BASF will ensure the renewable electricity it needs by means of "self-generation and purchase"
.
This also includes attracting more co-investors for the project to allow for a more efficient use of capital
.

BASF has long been working to bring low-emission technologies to the industrial sector
.
From 2030 onwards, BASF expects to realize a zero-carbon hydrogen production process and use an electrically heated steam cracker, which will greatly increase BASF's demand for renewable electricity
.
Steam crackers play a vital role in the production of basic chemicals.
The decomposition of hydrocarbons into olefins and aromatics under high temperature and pressure conditions consumes a lot of energy, while offshore wind farms are providing the required energy.
Renewable energy plays a key role
.

Borg and Brummeller said: "Vattenfall and BASF have been long-term partners
.
This project will further deepen their partnership and together will have a positive and far-reaching impact on the climate and our business development
.
We We will continue to look for future cooperation opportunities
.
”