German chemicals giant BASF is bundling its activities in clean power under the umbrella of BASF Renewable Energy from 1 January next year.
The wholly-owned subsidiary’s business activities will focus on supplying the BASF Group in Europe with electricity from renewable energies, electricity trading activities in Europe and global consulting for BASF and its group companies in the field of clean power.
The company is based in Ludwigshafen and will be managed by Horatio Evers, who was previously responsible for the development of renewable energies at BASF.
BASF expects that by gradually replacing electricity from fossil generation, from own production as well as purchase agreements, and scaling innovative, climate-friendly technologies to an industrial scale, its electricity consumption in Europe will increase from 9 terawatt-hours a year from fossil fuels to at least three to four times as much from renewable sources to reach its 2050 net zero goal.
BASF Renewable Energy is tasked with supplying the European sites with these additional volumes in line with demand.
The new company will initiate new additional projects to generate renewable energy from own production together with partners and conclude long-term supply agreements with producers.
Projects already underway to generate electricity from renewable energy sources include the participation in the Hollandse Kust Zuid offshore wind farm with Vattenfall, as well as a wind farm planned with RWE in the German North Sea.
Other major projects for the generation of electricity from renewable sources in Europe are under review or have already been initiated, the company said.
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.
“The reliable and efficient supply to BASF with sufficient quantities of electricity from renewable sources at competitive prices is necessary for the implementation of our goals and the achievement of the targeted climate neutrality.
“We are committed to a make-and-buy strategy in this regard.”
In addition to procurement and power trading, BASF Renewable Energy will also provide expertise and advice on renewable energy within the BASF Group worldwide.
BASF has set a target to reduce its greenhouse gas emissions by 25% by 2030 compared with 2018 and to achieve net zero emissions by 2050.