Vattenfall has entered into a power purchase agreement (PPA) with chemicals group LyondellBasell (LYB), under which LYB will receive fossil-free electricity from Vattenfall's planned Nordlicht 1 offshore wind farm off the German coast. The wind farm, still pending a final investment decision, is set to generate 980MW of electricity once completed.
Located approximately 85 kilometers north of the island of Borkum in the German North Sea, the Nordlicht 1 wind farm will feature 68 turbines and is scheduled to be connected to the grid by 2028. Vattenfall holds a 51% stake in the project, while BASF owns 49%.
Under the terms of the agreement, LYB will purchase around 450GWh of electricity annually from the offshore wind farm, which will be used to power its plastics production. This amount of electricity is equivalent to the annual consumption of approximately 128,500 German households. The PPA is set to run for 15 years, starting in 2028.
Martijn Hagens, head of markets at Vattenfall, commented, “With this electricity partnership with LYB, we at Vattenfall are sending a strong signal for our long-term strategy: We do not only want to decarbonize ourselves, but we also support our suppliers, partners, and customers in leading a life without fossil fuels.
