GHG Emissions, Industrial, Sourcing Renewables, Wind - November 30, 2021
BASF Improves on Implementing CO2 Reduction Targets
BASF, a German chemicals company, is accelerating its extensive cross-company activities to reduce its CO2 emissions by 25% by 2030 compared with 2018 and become climate neutral by 2050. The company also signed a 25-year PPA for renewable energy in Europe with ENGIE.
The company is creating a new unit called “Net Zero Accelerator,” which will focus on implementing and accelerating projects relating to low-CO2 production technologies, circular economy, and renewable energies.
“With the new project organization, we are continuing to accelerate and create more powerful structures within BASF to achieve our ambitious goals,” said Dr. Martin Brudermüller, chairman of the board of executive directors of BASF SE in a statement. “This further step demonstrates the determination to drive forward our transformation to a climate-neutral company.”
The new project organization, based in Ludwigshafen, Germany, will start on January 1, 2022, initially with around 80 employees.
The Net Zero Accelerator unit will be led by Dr. Lars Kissau as president, reporting directly to the chairman of the board of executive directors. Under Kissau’s leadership, existing and new projects to achieve the CO2 reduction targets will be launched and driven forward at corporate level worldwide in the future. The aim is to move the projects into the implementation phase over the next few years. In parallel, the operating divisions will continue to work on divisional projects to implement BASF’s ambitious CO2 reduction targets.
BASF also signed a PPA with ENGIE for renewable energy in Europe that is effective as of January 1, 2022. ENGIE will provide BASF with up to 20.7 terawatt-hours of renewable electricity.
Multiple European BASF sites will be supplied from ENGIE’s renewable project portfolio in Europe. The electricity will initially come from onshore wind farms located in various sites throughout the Spanish territory in which ENGIE acts as equity investor or energy manager. In the future, ENGIE will have the option to either deliver power from existing Spanish assets or from future onshore and offshore wind farms.
“With this agreement we take a significant next step on our path to climate-neutral chemical production,” said Brudermüller in a statement. “This long-term contract with a key player in the European energy market secures substantial volumes of electricity from renewable sources for BASF.”