Chemicals giant BASF forms own renewables business with green power demand 'set to quadruple'
German group that has already completed major deals sets up new unit to develop project and seal PPAs
Chemical giant BASF has formed its own renewable energy business to lead its efforts to meet what could be a quadrupling of demand for green power by its European operations.
The German group’s BASF Renewable Energy unit will be involved in project development in its own right, as well as signing major power purchase agreements (PPAs) with third parties, said a statement.
BASF – one of the world’s largest chemical firms – said demand by its European operations is expected to increase from a current nine terawatt hours annually “to the point where at least three to four times as much electricity from renewable sources will be needed” to reach its 2050 net zero target.
The new subsidiary will be based in Ludwigshafen and run by current BASF renewables chief Horatio Evers.
Evers said: “As the leading company in the chemical industry, we are already one of the largest industrial electricity consumers in Europe.
“Due to the conversion to renewable energy as well as the launch of new, low-emission production processes based on electricity, our demand will increase significantly in the future.”
BASF has already been involved in some of the most eye-catching green energy deals by a major industrial player.