Allianz enters offshore wind with investment in Dutch 1.5 GW project

German insurer Allianz, via its Allianz Capital Partners (ACP), has sealed an agreement with compatriot chemicals giant BASF to purchase a 25.2% stake in the wind farm Hollandse Kust Zuid, making it its first offshore wind and first equity renewables investment in the Netherlands.

The deal follows a transaction between Vattenfall and BASF under which BASF acquired 49.5% of the Dutch wind farm for $338m in September this year. Financial details of Allianz transaction will not be disclosed, ACP spokesperson said.

BASF had already indicated that it intends to reduce its investment by selling shares to a financial co-investor. The closing of the transaction with Allianz is subject to merger control approvals and is expected to close in Q1 2022. BASF will continue to receive most of the power produced by its originally acquired share under a long-term fixed-price corporate power purchasing agreement.

When completed, Hollandse Kust Zuid will be the largest offshore wind farm in the world with 140 wind turbines and a total installed capacity of 1.5 GW. The project, led by Sweden’s Vattenfall, is expected to become fully operational in 2023.