BASF sheds 25.2% stake in 1.5-GW offshore wind project to Allianz

Construction works for the Hollandse Kust Zuid wind farm in the North Sea. Image by Vattenfall AB. All Rights Reserved.

December 7 (Renewables Now) - German chemicals company BASF SE (ETR:BAS) has agreed to trim its shareholding in the 1.5-GW Hollandse Kust Zuid (HKZ) offshore wind farm project in Dutch waters by offloading a 25.2% stake to compatriot Allianz Capital Partners.

BASF’s announcement on Monday follows its recent purchase of a 49.5% interest in HKZ from Swedish power group Vattenfall AB. Its agreement with Allianz aligns with its plan to bring a financial investor on board in order to reduce the investment burden.

Allianz Capital Partners, on behalf of Allianz Insurance Companies, will purchase 25.2% of BASF’s stock, leaving it with 24.3%. The transaction, the value of which was not disclosed, is pending regulatory clearance and is seen to be completed in the first quarter of 2022.

HKZ, to be installed without subsidies, will be located 18 km (11.2 miles) off the Dutch coast, in an area between The Hague and Zandvoort. Its 140 turbines are planned to go online in 2023, generating electricity equal to the annual consumption of over two million Dutch households. The complex has been under construction since July.

BASF will still get most of the power from the 49.5% share of HKZ’s capacity through a long-term fixed-price corporate power purchase agreement (PPA). Another portion of the generated electricity will be distributed to Vattenfall's customers in the Netherlands.

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