The chemical company BASF announced it had recently struck a deal with the Swedish utility organization Vattenfall that will see BASF buy into two offshore German wind farms in the enterprise's latest attempt to reduce its carbon footprint and secure fossil-free power. The financial terms of the deal have not yet been announced.

According to Reuters, the companies said December 5 that they had signed a memorandum of understanding (MoU) for BASF to buy 49% of the shares of a project that encompasses the Nordlicht 1 and 2 North Sea wind farms.

The deal will likely be signed during the first half of 2024 with a final investment decision expected in 2025.

BASF said that it will receive about half of the electricity produced at the sites and use that power to supply its chemical production plants across Europe, namely its location in Ludwigshafen, Germany. Meanwhile, Vattenfall said that it will use its share of the electricity to supply its German customers with power.

The companies said the wind farms are expected to be fully operational by 2028 and will have a combined capacity of 1.6 gigawatts.

BASF and Vattenfall said the Nordlicht wind farms will eventually have a combined production of 6 terawatt hours annually once fully operational, which is equal to the amount of electricity consumed by 1.6 million German homes.

Previously, BASF invested $1.7 billion in 2021 to acquire 49.5% of Vattenfall’s Hollandse Kust Zuid Dutch wind park, which has a capacity of 1.5 GW.