BASF bundles renewable energy activities under new subsidiary

MADRID (ICIS)–BASF is to start up a subsidiary to bundle its renewable energy activities, effective 1 January 2022, the German chemicals major said on Thursday.

The new subsidiary has been named BASF Renewable Energy GmbH.

It will be headquartered at BASF’s flagship facilities in Ludwigshafen and will be led by Horatio Evers, previously responsible for the development of renewable energies at BASF.

BASF said it aims to gradually replace fossil fuel-based electricity to greener sources of energy produced in-house as well as signing Power Purchase Agreements (PPAs) with energy suppliers.

“[BASF’s] electricity consumption in Europe will increase from the current level of around nine terawatt hours of electricity from fossil generation annually to the point where at least three to four times as much electricity from renewable sources will be needed to reach the net zero goal,” said the chemicals major.

“BASF Renewable Energy GmbH is tasked with supplying the European sites with these additional volumes in line with demand.”

BASF has set a target to reduce its greenhouse gas (GHG) emissions by 25% by 2030, compared with 2018 levels, and aims to achieve net zero emissions by 2050.

On Wednesday, the company said the new subsidiary would employ around 80 employees, with a reporting line direct to the company’s CEO Martin Brudermuller.