Germany’s Largest Offshore Wind Farm to Proceed with Construction

Swedish offshore wind developer Vattenfall has recently announced its final investment decision to move forward with the construction of Germany’s largest offshore wind farm. This decision is not only a significant step for Vattenfall but also a positive development for the offshore wind sector in Germany, which is currently facing a political debate over its offshore wind policy.

The Nordlicht 1 and 2 offshore wind farms will be the focal point of this ambitious project, with construction set to commence on the first phase in 2026. With a capacity of 980 MW, these wind farms will be situated approximately 53 miles north of Borkum in the German North Sea. The final investment decision for the second phase is contingent on the acquisition of permits.

As part of this groundbreaking decision, Vattenfall has agreed to repurchase a 49 percent ownership stake in the project from German chemical company BASF. While Vattenfall initially acquired this portion in April 2024, the company has now opted to streamline its renewable power project portfolio. Despite this, BASF has secured a long-term agreement for the supply of renewable electricity from the project.

Helene Biström, Head of Business Area Wind at Vattenfall, emphasized the significance of the Nordlicht offshore wind cluster in advancing Germany’s energy transition and supporting industrial decarbonization. The project is expected to not only provide clean and reliable energy but also drive innovation and sustainability within the sector.

Vattenfall has also committed to using low-emission steel for the wind turbine towers at both wind farms, thereby reducing their carbon footprint by 16 percent. Once completed, the entire project is projected to generate over 1.6 GW of power, with the first phase anticipated to become operational by 2028.

Despite these positive developments, RWE’s CEO Markus Krebber recently voiced concerns about Germany’s offshore wind targets, citing efficiency issues and escalating grid connection costs. While the government aims to reach 70GW of installed capacity by 2045 to achieve climate neutrality, Krebber suggested a more modest target of just over 50 GW. However, industry experts have pushed back against this proposal, underscoring the importance of ambitious goals to stimulate growth in the offshore wind sector.

Germany’s offshore wind industry is at a critical juncture, with efforts underway to revitalize development and drive sectoral expansion after years of sluggish progress. Vattenfall’s commitment to the Nordlicht project represents a significant stride towards advancing renewable energy goals and fostering sustainability in the region.