BASF Partners with SPIC for 25-Year Renewable Power Supply at Zhanjiang Plant

BASF has entered into a significant 25-year power purchase agreement (PPA) with the State Power Investment Corporation (SPIC). This agreement is designed to provide renewable electricity for BASF's Zhanjiang Verbund site, currently under construction in Guangdong province, China. It represents a crucial step in BASF's pursuit of a 100% green power supply for the Zhanjiang Verbund site by the year 2025.

The partnership between BASF and SPIC is a notable achievement in the realm of renewable energy, following a framework agreement signed by the two entities in March 2022. It is a demonstration of their commitment to fostering sustainability and environmental responsibility.

BASF's Zhanjiang Verbund site is a critical component of this initiative, aiming to set a benchmark for sustainable production while contributing to the transformation of the chemical industry towards greener practices. The site aligns with China's ambitious carbon reduction goals, making it a significant contributor to the global fight against climate change.

Under the terms of this latest agreement, SPIC will supply an impressive 1,000 gigawatt-hours (GWh) of renewable electricity annually to power BASF's Zhanjiang Verbund site. This renewable electricity supply is slated to commence in 2025, coinciding with the startup of the site's steam cracker and core operations. The electricity generated for this purpose will primarily come from dedicated offshore wind power and photovoltaic plants located in Guangdong, China.

Dr. Markus Kamieth, a member of the Board of Executive Directors at BASF SE, expressed the significance of this partnership in the context of BASF's global climate goals. He noted that the collaboration with SPIC, one of the world's leading companies in photovoltaic and clean energy power generation, represents a concrete step toward achieving BASF's aim of net-zero emissions globally by 2050. Dr. Kamieth also highlighted the ongoing construction of BASF's Zhanjiang Verbund site, which he described as a model for sustainable production practices.

Xu Shubiao, Deputy General Manager of SPIC Group, emphasized SPIC's commitment to becoming a world-class clean energy enterprise and contributing to the green and low-carbon energy transformation. He recognized the synergy between SPIC and BASF, citing their complementary technical strengths and shared objectives in green power supply, renewable energy development, and clean energy conversion. By collaborating on the Zhanjiang Verbund site, SPIC aims to further promote green and sustainable development in the local economy and society, ultimately making valuable contributions to global efforts to combat climate change.

In summary, the 25-year power purchase agreement between BASF and SPIC marks a significant milestone in their efforts to promote renewable energy and sustainable practices. It underscores their commitment to reducing carbon emissions, supporting the global transition to cleaner energy sources, and setting an example for responsible industrial production. This collaboration aligns with China's and BASF's broader sustainability goals and reinforces their dedication to addressing the challenges of climate change.