By Pierre Bertrand

BASF and Vattenfall Group are in advanced and exclusive discussions to work together on two German offshore wind farms and have signed a memorandum of understanding for the sale of 49% of the project shares to BASF.

The planned offshore Nordlicht 1 and 2 wind farms are located 85 kilometers north of the island of Borkum in the German North Sea, BASF and Vattenfall said in a joint statement on Tuesday. Nordlicht 1 has a capacity of 980 megawatts while Nordlicht 2 has a 630 megawatt capacity.

Vattenfall will use its share of the electricity generated by the farms to supply its German customers, while German chemical company BASF aims to supply its European production sites, Ludwigshafen in particular, with almost half of the project's produced electricity.

The deal is expected to be signed in the first half of 2024. A final investment decision is expected in 2025 and, once acquired, construction will start in 2026.

The two wind farms are expected to be operational in 2028.

Write to Pierre Bertrand at pierre.bertrand@wsj.com

(END) Dow Jones Newswires

December 05, 2023 04:45 ET (09:45 GMT)

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