Ørsted and BASF sign 25-year offshore wind power purchase agreement in Germany
Northampton, MA –News Direct– Ørsted
November 30, 2021 / 3BL Media / – The offshore wind farm will have a total installed capacity of 900 megawatts and will enter full commercial operation in 2025. Ørsted recently obtained planning approval from the German Federal Maritime and Hydrographic Agency (BSH) .
With this CPPA as a tangible first step, the two companies will examine where the interests of the two companies can match in the future to support emission reductions in the chemical industry. The power purchase agreement will help meet the increased electricity needs of low-emission technologies for BASF and is a step towards BASF’s ambition to become carbon neutral by 2050.
As the deal will run for 25 years, this is the longest CPPA for offshore wind yet to be announced and an important step in enabling Ørsted to make the final investment decision on Borkum Riffgrund 3, which is expected towards the end. from 2021.
Borkum Riffgrund 3 was the world’s first large-scale offshore wind farm to receive a zero bid. This was made possible by several cost factors, including the installation of next-generation wind technology, very favorable site conditions and high wind speeds, and the power purchase agreements stabilizing revenues with industrial partners such as BASF.
“This supply agreement with Ørsted is another important step in securing additional renewable energy for BASF,” said Dr Martin Brudermüller, Chairman of the Board of BASF SE. “BASF wants to reduce its CO2 emissions by 25% by 2030 compared to 2018. To achieve this ambitious goal, we will need to replace large amounts of fossil fuels with renewable energies in the years to come. Ørsted can supply the additional quantities required by building new wind farms to support us in our energy transformation.
Mads Nipper, CEO of Ørsted, says: “In the common fight against climate change, it is partners like BASF that will make the difference. The chemical sector has a difficult path to decarbonization, but it will also make one of the greatest contributions. For this reason, countries like Germany must meet the huge demand for renewable electricity by urgently making more seabed available for offshore wind projects and increasing its ambitions to deploy renewable energy sources. large scale such as offshore wind. Offshore wind in the North Sea and Baltic Sea is an abundant source of green electricity that can be unleashed through clearer and more ambitious policies. With our vision of a world entirely powered by green energy, we aim to further accelerate the development of renewable energies and to support partners like BASF in achieving their climate ambitions.
“Ørsted and BASF share the same vision that innovative zero-emission technologies like large-scale offshore wind power can play an important role in reducing emissions in the chemical industry,” say the two CEOs, Brudermüller and Nipper.
BASF is working to scale low-emission technologies to industrial dimensions. Along this path, beyond 2030, BASF plans to implement technologies such as CO2-free methods for hydrogen production and electrically heated steam crackers, which will significantly increase BASF’s demand for renewable energy.
Ørsted is also pursuing ambitious decarbonisation targets. Over a decade ago, the company began its own transformation from one of the most coal-consuming energy companies to the most sustainable energy company in the world. Ørsted aims and plan to become carbon neutral in its energy production by 2025 and achieve full decarbonization of the value chain by 2040, as the world’s leading energy company with scientific plans validated. By 2030, Ørsted aims to have installed 50 gigawatts of renewable energy capacity. Of this total, 30 GW will be offshore wind energy.
For more information, please contact:
Ørsted Germany Media relations Iris Franco Fratini Communication manager + 49 (0) 160 [email protected]
Ørsted Group Media Relations Michael Korsgaard + 45 99 55 94 [email protected]
Ørsted Investor Relations Allan Bødskov Andersen + 45 99 55 79 [email protected]
BASFT Corporate Media Relations Thomas Nonnast + 49 173 379 [email protected]
BASFDr Investor Relations. Stefanie Wettberg + 49 621 [email protected]
At BASF, we create chemistry for a sustainable future. We combine economic success with environmental protection and social responsibility. More than 110,000 BASF Group employees contribute to the success of our customers in almost every industry and almost every country in the world. Our portfolio is organized into six segments: chemicals, materials, industrial solutions, surface technologies, nutrition and care, and agricultural solutions. BASF generated sales of € 59 billion in 2020. BASF shares are traded on the Frankfurt Stock Exchange (BAS) and as American Depositary Receipts (BASFY) in the United States. More information on www.basf.com.
Ørsted’s vision is a world that runs entirely on green energy. Ørsted develops, builds and operates offshore and onshore wind farms, solar farms, energy storage facilities and bioenergy plants, and supplies energy products to its customers. Ørsted ranks as the world’s most sustainable energy company in the 2021 Corporate Knights Index of the World’s 100 Most Sustainable Companies and is recognized on the CDP’s A List on Climate Change as a global leader in climate action. Based in Denmark, Ørsted employs 6,672 people. Ørsted shares are listed on Nasdaq Copenhagen (Orsted). In 2020, the group’s turnover amounted to 52.6 billion Danish kroner (7.1 billion euros). Visit orsted.com or follow us on Facebook, LinkedIn, Instagram and Twitter.
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See the source version on newsdirect.com: https://newsdirect.com/news/orsted-and-basf-sign-a-25-year-offshore-wind-power-purchase-agreement-in-germany-990153991