BASF signs PPA for 900 MW Offshore wind farm in Germany

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).

The 25 years agreement 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.

Borkum Riffgrund 3 was the world’s first large-scale offshore wind farm to be awarded a zero bid. This was made possible by several cost-drivers, including the installation of next-generation wind turbine technology, very favorable site conditions and high wind speeds, and anticipated revenue-stabilizing power purchase agreements with industrial partners such as BASF.