Ørsted and BASF sign offshore wind energy agreement
Published by Bella Weetch,
Editorial Assistant
Energy Global,
The offshore wind farm will have a total installed capacity of 900 MW and will enter 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 (PPA) will help cover the increased electricity needs of low-emission technologies for BASF and is a step towards its ambition of becoming carbon neutral by 2050.
As the agreement will run for 25 years, it is one of the longest CPPAs for offshore wind ever announced and an important step in enabling Ørsted to take Final Investment Decision (FID) on Borkum Riffgrund 3, which is expected towards the end of 2021.
Borkum Riffgrund 3 was one of the world’s first large-scale offshore wind farms to be awarded with a zero bid. This was made possible by several cost-drivers, including the installation of next-generation wind turbine technology, very favourable site conditions and high wind speeds, and anticipated revenue-stabilising PPAs with industrial partners such as BASF.
BASF is working on scaling-up low-emission technologies to industrial dimensions. On this path, the company expects to implement technologies such as CO2-free methods for the production of hydrogen and electrically heated steam crackers beyond 2030, which will significantly increase its demand for renewable power.
Ørsted is also pursuing ambitious decarbonisation goals. More than 10 years ago, the company started its own transformation from being one of the most coal-intensive energy companies to being one of the most sustainable energy companies in the world. It has the target and plan of becoming carbon neutral in its energy generation by 2025 and of reaching full value chain decarbonisation by 2040, as one of the world’s first energy companies with scientifically validated plans. By 2030, Ørsted aims to have installed 50 GW of renewable energy capacity. Of this, 30 GW will be offshore wind power.
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Energy Global's Autumn 2021 issue
The Autumn issue of Energy Global features a varied spectrum of in-depth technical articles detailing recent projects, future projections, and technological advancements in the renewables sector, from companies including MISTRAS Group, Fugro, X1 Wind, Sulzer, and more.
Read the article online at: https://www.energyglobal.com/wind/12112021/rsted-and-basf-sign-offshore-wind-energy-agreement/
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