BASF (BASFY) & Vattenfall Partner Vestas for Wind Turbines
BASF SE BASFY and Vattenfall recently inked supply and service contracts with Vestas for 112 wind turbines of the type V236-15.0 MW. The cutting-edge turbines will power Vattenfall and BASF's Nordlicht 1 and 2 offshore wind projects in the German North Sea, off the island of Borkum. These will be able to generate enough electricity to power 1.6 million households starting in 2028. Parts of the wind turbine towers will be made of low-emission steel, which will drastically reduce the towers' carbon footprint.
The turbines will be installed in the Nordlicht wind farm area: 68 for Nordlicht 1 and 44 for Nordlicht 2. With a nominal output of 15 MW, V236 is currently the most powerful wind turbine available in the offshore wind turbine industry.
Vattenfall, BASF and Vestas intend to swiftly expand wind projects and decarbonize the European energy market, and Nordlicht is expected to play an important part in achieving Germany's energy transition goals. Vattenfall has extensive experience in offshore wind projects.
BASF has a 49% stake in the Nordlicht 1 and 2 wind farm projects. The Nordlicht wind project in the German North Sea is being built without governmental subsidies and has a total installed capacity of 1.6 gigawatts. It is Vattenfall's largest offshore wind farm project to date. Vattenfall is developing and building the Nordlicht sites and expects to use its share of future electricity generation to provide fossil-free electricity to German customers. BASF will utilize around half of its electricity to power its European chemical production locations, particularly in Ludwigshafen.
Shares of BASFY have gained 0.6% over the past year against its industry’s 6.8% decline.
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Zacks Rank & Other Key Picks
BASF currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks in the basic materials space are ATI Inc. ATI, Carpenter Technology Corporation CRS and Ecolab Inc. ECL.
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Carpenter Technology currently sports a Zacks Rank of 1. CRS beat the Zacks Consensus Estimate in each of the last four quarters, with the average earnings surprise being 15.1%. The company's shares have surged 97% in the past year.
The Zacks Consensus Estimate for Ecolab's current-year earnings is pegged at $6.59 per share, indicating a year-over-year rise of 26.5%. The consensus estimate for ECL's current-year earnings has gone up in the past 30 days. ECL, which currently carries a Zacks Rank of 2, beat the consensus estimate in each of the last four quarters, with the average earnings surprise being 1.3%. The company's shares have gained roughly 33.7% in the past year.
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