In Germany, global chemicals major BASF SE (BASF) and compatriot global energy utility RWE AG have signed a Letter of Intent (LoI) covering wide-ranging cooperation for the creation of additional capacities for renewable electricity and the use of innovative technologies for climate protection.
An error occurred
On your profile you can see what subscriptions you have access to and more information.
Is some of the information wrong – please contact our customer service.
Please reload the page
Do you want to read the whole article?
- Six editions per year
- Full access to all digital content
- The E-magazine Bioenergy international
- And more ...
Today in Ludwigshafen, Germany, accompanied by Chairman of the Mining, Chemical, and Energy Industries Union (IG BCE) Michael Vassiliadis,
Dr Martin Brudermüller CEO, BASF, and Dr Markus Krebber, CEO of RWE also presented a project idea that shows how industrial production can become sustainable and future-proof.
The project envisions an additional offshore wind farm with a capacity of 2 gigawatts (GW) to provide BASF’s Ludwigshafen chemical site in Germany with green electricity and enable carbon dioxide (CO2) free production of hydrogen.
Together we want to accelerate the transition to a CO2-neutral chemical industry through electrification and through the use of CO2-free hydrogen, said Brudermüller and Krebber.
Electrify base chemicals production processes
The aim is to electrify the production processes for basic chemicals, which are currently based on fossil fuels. This will involve utilizing CO2-free technologies such as electrically heated steam cracker furnaces to produce petrochemicals. BASF is already working with partners on developing these technologies.
To advance the joint project, the CEOs of BASF and RWE have signed a Letter of Intent (LoI) covering wide-ranging cooperation for the creation of additional capacities for renewable electricity and the use of innovative technologies for climate protection.
The signing and project announcement took place on May 21, 2021, in Ludwigshafen, Germany, and was attended by Michael Vassiliadis, Chairman of the Mining, Chemical, and Energy Industries Union (IG BCE).
Here, two strong partners are making climate-friendly transformation and energy transition tangible and concrete. We stand behind this major project because it can be a symbol of the innovative power of industry and its employees. In many places, they are working with great passion and expertise to shape the transformation. They deserve all the support they can get, commented Michael Vassiliadis.
These plans could result in the avoidance of around 3.8 million tonnes of CO2 emissions per year, of which 2.8 million tonnes would be realized directly at BASF in Ludwigshafen.
It shows very clearly how climate protection and competitiveness can be harmonized in the chemical industry. No public subsidies would be needed for the construction of the wind farm.
Without the availability of sufficient volumes of electricity from renewable sources at competitive prices, our future transformation will not be possible! This task is only achievable with innovative and intensive cooperation between politics and industry. And it requires collaboration across the value chains. In our partnership between RWE as a leading company in power generation and BASF in chemicals, we bring together the necessary prerequisites and the will to shape things, said Dr Martin Brudermüller, Chairman of the Board of Executive Directors of BASF SE.
Dedicated offshore wind sites for industry
Realizing this plan will require a “suitable” regulatory framework. Policymakers have said they plan to significantly increase the expansion targets for renewable energies and accelerate capacity additions.
For this to succeed, there will need to be a tendering process for offshore project sites where the current plans only foresee use after 2030.
Coupling a new offshore wind farm already in the planning stage to an industrial customer such as BASF, who will convert its production to green electricity and hydrogen on this basis, would be a first for Germany. The realization of our proposal would represent a true acceleration of the expansion of renewable energies. Of course, there are still some open questions, but we want to push this forward – the faster, the better. This is how we will shape the energy transition, said RWE’s CEO Dr Markus Krebber.
The companies instigate that these sites should be specifically designated for tenders focused on industrial transformation processes. Another important factor: Green electricity should not be subject to EEG levy.
In addition, there is currently no regulatory framework for CO2-free hydrogen production.
We are convinced. Climate-neutral industrial production ‘made in Germany’ ensures that value-added and employment remain in Germany and opens up export opportunities for new technologies, ended Brudermüller and Krebber.
