Vattenfall divests 49.5% stake in Hollandse Kust Zuid project to BASF

BASF and Vattenfall have signed a contract for the purchase of 49.5% of Vattenfall’s wind farm Hollandse Kust Zuid (HKZ) by BASF. The purchase price amounts to EUR300 million (US$357.9 million) 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 EUR1.6 billion (US$1.9 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 in 2023, the wind farm will have 140 wind turbines and a total installed capacity of 1.5 Gigawatt. The Hollandse Kust Zuid wind farm will be the first fully merchant offshore wind farm in the world which does not receive any price subsidies for the power produced. 

BASF is acquiring the electricity from the wind farm for its ownership share through a long-term power purchase agreement.