M&As: Celanese acquires POM technology from Grupa Azoty; BASF acquires stake in biggest wind farm project

Speciality materials firm Celanese Corporation has acquired certain technology relating to the production of polyacetal (POM) products from Grupa Azoty S.A. of Tarnow, Poland, after its decision to discontinue its POM manufacturing.

Celanese will take over all existing Tarnoform® contracts in order to serve Azoty’s customers. However, with the exception of certain equipment transferred in connection with the intellectual property transfer, this transaction does not include any of Azoty’s employees, tangible assets, manufacturing facilities or sales offices.

“This transaction will enable Celanese to serve Azoty’s customers with Celanese assets, thereby allowing for an incremental volume opportunity for Celanese as well as access to a POM customer base and a proven POM technology in Tarnoform®,” said Tom Kelly, Senior Vice President, Engineered Materials, Celanese. “Our Engineered Materials business is a critical growth engine for Celanese, and we continue to take the strategic steps needed, such as this customer and product acquisition, to fuel the ongoing success of the business,” concluded Kelly.

The transaction is expected to close in early July 2021.

Germany-based chemical company BASF has agreed to acquire 49.5% of the Hollandse Kust Zuid (HKZ) offshore wind farm in the Netherlands for EUR300 million. The wind farm, owned by Swedish energy company Vattenfall, is expected to be the world’s largest wind farm once operational.

Due to come fully online in 2023, the wind farm will have 140 turbines and 1.5GW of total.

Including BASF’s contribution to fund the wind farm construction, BASF’s total commitment amounts to around EUR1.6 billion. Closing of the transaction is expected in the fourth quarter of 2021, subject to the approval of the relevant authorities. Offshore construction of the wind farm will start in July 2021.

The Hollandse Kust Zuid wind farm will also be the first fully merchant offshore wind farm in the world which does not receive any price subsidies for the power produced. A significant part of the electricity production of HKZ is reserved for Vattenfall’s Dutch customers.

BASF is acquiring the electricity from the wind farm for its ownership share through a long-term power purchase agreement. It will enable BASF to implement innovative, low-emission technologies at several of its production sites in Europe. BASF’s Antwerp Verbund site will benefit from the renewable power to a significant extent. The BASF Antwerp site is the largest chemical production site in Belgium and the second largest BASF Group site worldwide.

The supply scheme to other BASF sites in Europe will depend on the further development of the respective regulation for renewable energy. The wind farm will also support the Netherlands in reaching its target share of renewable power generation and greenhouse gas reduction targets. BASF has more than 1,500 employees in the Netherlands who develop, produce and sell products for many sectors at various locations.

“This wind farm will be an important building block to supply our Antwerp Verbund site and other European sites with renewable electricity. It is the first major investment of BASF in facilities for renewable power. With this investment we are securing significant volumes of electricity from renewable sources for BASF, which is a key element of our transformation towards climate neutrality,” said Dr. Martin Brudermüller, Chairman of the Board of Executive Directors of BASF SE.

“Vattenfall and BASF share a common objective of phasing out greenhouse gas emissions from our operations. With this cooperation, Vattenfall once more proves that partnerships with industries are a key element to accelerate the European energy transition across sectors. I am particularly proud that we can do this, while at the same time securing the delivery of fossil-free electricity to our Dutch customers,” said Anna Borg, President and CEO of Vattenfall.

Vattenfall has a mission to enable fossil-free living within one generation. In order to reach this goal, the company invests heavily in renewable energy. Offshore wind plays an important part in reaching its goals. A cornerstone of Vattenfall’s growth strategy is to look for partners to balance the significant investment costs of its future assets.  Strong investors will support Vattenfall to accelerate and drive the transformation of the energy landscape since it will open up financial space for new investments in renewables and decarbonization.

BASF aims to reduce its greenhouse gas emissions by 25% by the year 2030 and achieve net-zero emissions by 2050. One important lever to further bring down emissions is replacing fossil-based electricity with fossil-free electricity. BASF will secure the required amounts of renewable power through a “make and buy” approach. This includes the intention to bring in financial co-investors to this project allowing for an efficient use of capital.

BASF is working on scaling up low-emission technologies to industrial dimensions. Beyond 2030, BASF expects to implement technologies such as CO2-free methods for the production of hydrogen and electrically heated steam crackers, which will significantly increase BASF’s demand of renewable power. Steam crackers play a central role in the production of basic chemicals and require a significant amount of energy to break down hydrocarbons under high temperatures and pressure into olefins and aromatics. Offshore wind farms can play a key role to supply the required amounts of renewable energy.

“Vattenfall and BASF are long-standing partners. With this truly European project we take a further step in strengthening our partnership. Together we will make a positive impact on the climate, on our businesses, and we will continue to look for future opportunities for cooperation,” said Borg and Brudermüller.

(PRA)

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