Wind Energy – purchase agreement
BASF and Ørsted have concluded a 25-year fixed-price corporate power purchase agreement (CPPA), under which BASF will offtake the output of 186 megawatts from Ørsted’s planned Borkum Riffgrund 3 Offshore Wind Farm in the German North Sea.
The offshore wind farm will have a total installed capacity of 900 megawatts and go into full commercial operation in 2025. Ørsted has recently secured planning approval from the German Federal Maritime and Hydrographic Agency (BSH).
With this CPPA as a tangible first step, the two companies will look into where the interests of both companies can match in the future to support emission reductions in the chemical industry.
The power purchase agreement will help cover the increased electricity needs of low-emission technologies for BASF and is a step towards BASF’s ambition of becoming carbon neutral by 2050.
As the agreement will run for 25 years, it is the longest CPPA for offshore wind ever announced and an important step in enabling Ørsted to take final investment decision on Borkum Riffgrund 3, which is expected towards the end of 2021.