Swedish power utility Vattenfall said on Tuesday it has made a final investment decision for two wind farm projects in the German North Sea, Nordlicht 1 and 2, the first of which is expected to become Germany's biggest offshore wind farm.

Wind turbines from Vattenfall are seen at the North Sea in Scheveningen, Netherlands August 25, 2022.

Vattenfall said in a statement it had agreed to buy back the 49% stake in the Nordlicht cluster sold to BASF (BASFn.DE), in 2024, while the German chemicals group will receive access to long-term supply of renewable electricity.

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Construction for Nordlicht 1 and 2, which will have a total capacity of 1.6 gigawatt, is planned to begin in 2026, Vattenfall said.

Expected to be fully operational in 2028, the two wind farms will be able to produce around 6 terawatt hours (TWh) of electricity per year, equivalent to the electricity consumption of 1.6 million German households.