Chemicals giant BASF will build an offshore wind farm in China in conjunction with local turbine group Mingyang in what it called a first of a kind deal.
BASF and Mingyang will together construct and operate a 500MW project in waters off Guangdong province in southern China, supplying green power to the Germany-based group’s €10bn ($11bn) Zhanjiang Verbund site, its largest ever investment.
“This is the first Sino-German offshore wind farm project involving development, construction and operation,” said BASF.
The partners expect the project to be fully operational by 2025 subject to local approvals, with Mingyang owning 90% of the wind farm and BASF the remainder.
This is not the first foray into offshore wind co-ownership by BASF. It already owns almost half of the 1.5GW Hollandse Kust South project in the Dutch North Sea, the world’s largest offshore wind farm currently operating.
The chemical group in 2021 formed its own renewable energy business as part of efforts to drive forward its corporate net zero goals.
Mingyang is one of China’s most ambitious wind equipment players, particularly offshore, where it is located developing a record-breaking 18MW turbine and has plans to break into Europe, where it already has smaller machines turning off Italy.
“As a partner of BASF, Mingyang will provide its expertise in clean energy equipment and solutions to help create more green lighthouse projects, promote sustainable development in the chemical industry, and accelerate eco-friendly, green and low-carbon development.” said Zhang Chuanwei, Mingyang’s founder and chairman.