BASF is buying 49 percent of Vattenfall's Nordlicht offshore wind farms in the German North Sea, its second investment alongside Vattenfall at sea. The price took seven months to surface and, divided by the project's 1.6 GW, it looks cheap. Most of it, on Enerdatics' estimate, is not paying for wind farm development at all.
Key takeaways
- BASF signed a memorandum of understanding on 5 December 2023 to acquire a 49 percent stake in Vattenfall's Nordlicht 1 and 2 offshore wind farms in Germany, and the transaction was formally signed on 22 April 2024.
- Vattenfall disclosed in its Q2 2024 report that the equity consideration for BASF's 49 percent stake in Nordlicht is $533.85 million, equal to about $0.68 million per MW on a 100 percent basis across 1,610 MW.
- Enerdatics calculates the site lease payments for Nordlicht at about $717 million on a 100 percent basis, or $351 million for a 49 percent share, leaving a developer premium of $182 million, or $0.23 million per MW.
- Nordlicht comprises two sites 85 km north of Borkum, Nordlicht 1 at 980 MW and Nordlicht 2 at 630 MW, with a final investment decision expected in 2025, construction from 2026 and full operation in 2028.
- BASF will receive 49 percent of Nordlicht's output, estimated at around 6 TWh a year in total, to supply its chemical production sites in Europe, particularly Ludwigshafen.
How did the deal move from memorandum to disclosed price?
It moved in three steps, and the price came last. The first version of this post, published on 7 December 2023, covered BASF's announcement two days earlier that it had signed a memorandum of understanding with Vattenfall. That set the stake and the asset but not the terms, and said signing was expected in the first half of 2024.
The binding agreement followed on 22 April 2024, the date Leap records for the transaction. On the same day Leap logs a power purchase agreement between Vattenfall and BASF covering 796.95 MW of Nordlicht's capacity. The consideration was still not public.
It surfaced in Vattenfall's Q2 2024 report, which put the equity consideration at $533.85 million. Neither party had disclosed it in the deal announcement. Leap marks the figure as identified by Enerdatics from that report rather than from a press release.
Why does $0.33 million per MW understate the price?
Because it divides a 49 percent price by 100 percent of the capacity. $533.85 million across all 1,610 MW gives $0.33 million per MW, which is what a structured database field shows. BASF is not buying 1,610 MW. It is buying 49 percent of it.
Grossing up fixes that. If 49 percent costs $533.85 million, the whole project is valued at about $1,090 million, or $0.68 million per MW. That is the number to compare with other offshore deals. Leaving the stake out halves the apparent price and makes Nordlicht look far cheaper than it is.
What is BASF actually paying for?
Mostly the right to the sites. Enerdatics estimates that, broadly, a deal value for an offshore project in development equals the buyer's share of what has been invested in the project so far, spent and committed, plus a premium to the developer for the work done. For Nordlicht, Enerdatics believes the investment is mainly the lease payments attached to the sites.
Enerdatics calculates those payments at about $717 million on a 100 percent basis, from the reported lease fee of $0.45 million per developable MW. Enerdatics understands the fee is payable to the transmission system operator in annual instalments over 20 years. BASF's 49 percent share is $351 million, which is about two thirds of the price.
Subtract that and the developer premium is $182 million, or $0.23 million per MW. A developer premium is the amount a buyer pays above the cost already sunk into a project, in recognition of the permits, studies and position the developer has built. On Enerdatics' estimate, that is the part of BASF's payment that rewards Vattenfall's development work.
Enerdatics records five development-stage German offshore wind transactions with a disclosed value between January 2022 and December 2024. Grossed up to a 100 percent basis, they span a wide range. RWE paid $37.68 million for Northland Power's 49 percent of the 1,560 MW Nordsee cluster, about $0.05 million per MW. TotalEnergies agreed to pay $135 million for 50 percent of a 4 GW RWE portfolio, about $0.07 million per MW. Northland Power paid $12 million for 49 percent of a 225 MW site, about $0.11 million per MW. At the top, EnBW's sale of 49.9 percent of the 960 MW He Dreiht project grosses up to $2.91 million per MW. Nordlicht, at $0.68 million per MW, sits second of five, well above the early-stage site deals and well below He Dreiht.
What does the deal signal for German offshore wind?
It signals that industrial buyers are becoming equity partners in German offshore wind to secure power, not just signing contracts for it. BASF takes its share of the electricity as an owner and plans to use it at its chemical sites, particularly Ludwigshafen. Vattenfall keeps 51 percent, builds and develops the project, and uses its share for German customers.
The same pairing has been tested before. BASF bought 49.5 percent of Vattenfall's 1.5 GW Hollandse Kust Zuid project in the Netherlands in 2021, and Nordlicht is its second investment in a Vattenfall offshore wind farm. Repeating a partner on a second project lowers execution risk for both.
Vattenfall has since sold part of its own share forward. Leap records PPAs from Nordlicht 1 with Salzgitter for 75 MW in August 2024 and with LyondellBasell for 117 MW in January 2025. Heavy industry is taking the bulk of the output, as it did at EnBW's He Dreiht, where seven contracts cover 45 percent of output.
The price also marks where development risk ends. In-construction German offshore stakes trade far higher: Kansai Electric's purchase of 49 percent of the 315 MW Windanker project grosses up to $4.27 million per MW, and Masdar's stake in Baltic Eagle implies $3.70 million per MW. Nordlicht's buyer is paying before the final investment decision, and the gap is the price of that risk.
Frequently asked questions
How much did BASF pay for its Nordlicht stake?Vattenfall disclosed in its Q2 2024 report that the equity consideration for BASF's 49 percent stake is $533.85 million. On a 100 percent basis that values Nordlicht at about $0.68 million per MW.
What is the developer premium in the Nordlicht deal?Enerdatics calculates a developer premium of $182 million, or $0.23 million per MW, after subtracting BASF's $351 million share of the estimated site lease payments from the deal value.
When will Nordlicht be operational?A final investment decision is expected in 2025, construction is due to start in 2026, and both wind farms are expected to be fully operational in 2028.
Ready to get deal-ready answers in seconds? Try Enerdatics Leap AI and access verified intelligence across M&A, financings, PPAs, projects, and energy market developments through natural language.
.jpeg)
