Once operational, HKZ would become one of the world’s largest offshore wind farms, with 140 wind turbines and 1.5GW installed capacity
BASF to divest 25.2% stake in HKZ to Allianz. (Credit: Andrew Martin from Pixabay.)
Germany-based chemicals company BASF has reached an agreement with Allianz Capital Partners to divest a 25.2% stake in Hollandse Kust Zuid (HKZ) windfarm.
Allianz Capital Partners has signed the stake purchase agreement on behalf of Allianz Insurance Companies.
The transaction marks Allianz’ first renewables equity investment in offshore wind, and the first renewables equity investment in the Netherlands
The transaction is expected to complete in the first quarter 2022, subject to merger control approvals.
Upon closing of the acquisition, BASF is expected to consolidate its remaining 24.3% participation stake at-equity.
In September this year, the chemicals company has acquired 49.5% stake in HKZ wind farm from Sweden’s state-owned utility Vattenfall.
Also, the company will use majority of the power produced by the HKZ wind farm, under a long-term power purchasing agreement (PPA).
The transaction is expected to create value for both BASF as purchaser of the power produced by the wind farm and Allianz as a financial investor.
Allianz Group CIO Carsten Quitter said: “We are delighted about our first offshore wind investment and our first renewables investment in the Netherlands.
“We look forward to supporting jointly with our partners this ambitious project which will play a major role in the green energy supply of Europe. With this investment we will further drive the energy transition towards renewables.”
HKZ is an offshore wind farm, being developed at HKZ Wind Farm Zone, located 22km away from the Dutch North Sea coast, Netherlands.
Vattenfall received permits from the Dutch Minister of Economic Affairs and Climate Policy in September 2018, to construct and operate HKZ I and II offshore wind farms.
In Jun 2020, the Swedish electric utility has taken a final investment decision (FID) for the 1.5GW HKZ 1-4 offshore wind farm in the North Sea.
Vattenfall is expected to bring the project into operations in 2023.
Once operational, HKZ is anticipated to become one of the largest offshore wind farms in the world, with 140 wind turbines and a total installed capacity of 1.5GW.
Allianz Capital Partners infrastructure co-head Andrew Cox said: “We are very pleased to be partnering with BASF with regards to this opportunity.
“BASF is providing a long-term fixed-price power purchasing agreement for the project which will ensure a strong contracted revenue stream for many years to come.”