BASF and GEDI Sign 25-Year Renewable Power Agreement for Zhanjiang Site

On April 11, 2024, BASF finalized a 25-year power purchase agreement (PPA) with China Energy Engineering Group Guangdong Electric Power Design Institute Co., Ltd. (GEDI) to procure renewable electricity for its Zhanjiang Verbund site. This agreement marks another milestone in the renewable energy collaboration between BASF and GEDI, which began with the signing of a Letter of Intent (LOI) in September 2023.

This agreement represents a significant achievement for BASF in securing the necessary arrangements for sourcing 100% renewable electricity for the Zhanjiang Verbund site. Moreover, it represents another fruitful partnership in Sino-German low-carbon endeavors, furthering the initial Letter of Intent (LOI) inked by BASF and the China National Development and Reform Commission (NDRC) in June 2023.

"Committing to achieve net zero carbon emissions globally by 2050, BASF views the longstanding collaboration with Guangdong Electric Power Design Institute Co., Ltd.  (GEDI) as a significant stride towards our ambitious climate goals," stated Marko Murtonen, Senior Vice President, New Verbund Site China, BASF & General Manager, BASF Integrated Site (Guangdong) Co. Ltd. "We are dedicated to establishing our Zhanjiang Verbund site as a beacon for low-carbon and sustainable development in the global chemical industry. Through our partnership with GEDI, we anticipate fostering additional low-carbon initiatives and renewable energy projects, thereby enhancing Guangdong's 'new quality productive force'."

In addition to the PPA, BASF and GEDI are investigating additional opportunities for collaboration in the low-carbon sector.

Upon completion, the Zhanjiang Verbund site will represent BASF's most significant investment to date, totaling approximately €10 billion. It will be under BASF's exclusive management and rank as the company's third-largest Verbund site globally, after Ludwigshafen, Germany, and Antwerp, Belgium.

Since 1885, BASF has remained dedicated to Greater China, establishing significant production facilities in Shanghai, Nanjing, Chongqing, and Zhanjiang, along with a regional research and development center in Shanghai. As one of the leading foreign investors in China's chemical industry, BASF recorded sales of around €9.4 billion in 2023, serving customers across Greater China and employing 12,115 individuals by year-end.

BASF is dedicated to crafting chemistry for a sustainable tomorrow, intertwining economic prosperity with environmental stewardship and societal accountability. With approximately 112,000 employees worldwide, the BASF Group collaborates to support the triumph of its clientele across virtually every industry and nearly all corners of the globe. The BASF portfolio encompasses six segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care, and Agricultural Solutions. In 2023, BASF achieved sales totaling €68.9 billion.