German chemicals giant BASF has completed the purchase of 49.5 per cent of the Hollandse Kust Zuid offshore wind farm from Vattenfall, following the approval of all relevant authorities.
The closing of the transaction, originally expected for the fourth quarter of 2021, was completed earlier than planned, BASF said.
According to the agreement BASF and Vattenfall had signed in June 2021, the purchase price amounts to EUR 300 million.
Including the contribution to fund the wind farm construction, BASF’s total commitment amounts to around EUR 1.6 billion, the company said.
BASF intends to reduce its investment by selling shares to a financial co-investor and the respective process has been initiated already.
Construction work for the wind farm in the Dutch North Sea started in July 2021.
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The subsidy-free offshore wind farm is expected to become fully operational in 2023.
Once completed, it will be the largest offshore wind farm in the world with a total installed capacity of 1.5 GW.
The electricity from the wind farm will enable BASF to implement innovative, low-emission technologies at several of its production sites in Europe, the company said. Another significant part of the electricity production is reserved for Vattenfall’s Dutch customers.