BASF Secures Long-Term Renewable Energy Deal in China

• BASF signs a decade-long deal for 100% renewable energy in China, powering its commitment to sustainability and net-zero emissions by 2050. Green transformation starts here!

BASF SE has signed a 10-year power purchase agreement (PPA) to procure renewable electricity for its three manufacturing sites in Jiangsu province, China. The agreement involves CLP China as the power generation party and Envision Energy as the retailer. BASF's Nanjing, Rudong, and Zhenjiang sites currently consume 100% renewable electricity and aim to sustain this commitment over the next decade.

The electricity will be sourced from CLP’s photovoltaic projects located in Wuxi, Huai’an, and Yangzhou. This move supports BASF's goal of achieving net-zero carbon emissions by 2050 and enhances its ability to provide products with a reduced carbon footprint, aiding its downstream customers in their green transformation efforts.

How does BASF's PPA support its net-zero carbon emissions goal by 2050?

• Long-term Commitment: The 10-year duration of the power purchase agreement (PPA) reflects BASF's commitment to sustainable energy sourcing. A long-term PPA provides stability and predictability in energy costs, allowing BASF to plan its operations around renewable energy.
• Renewable Energy Adoption: By securing 100% renewable electricity for its sites, BASF not only reduces its carbon emissions but also sets an industry benchmark for sustainability practices in chemical manufacturing, inspiring other companies to follow suit.
• Local Sourcing of Energy: The PPA will utilize locally sourced renewable energy from CLP’s photovoltaic projects within China, supporting regional clean energy initiatives and reducing the carbon emissions associated with energy transportation.
• Enhanced Supply Chain Sustainability: By focusing on renewable energy, BASF can help its clients achieve their sustainability targets. This alignment with customer demands for lower carbon products strengthens BASF's competitive advantage.
• Integration of Renewable Technologies: Partnering with Envision Energy, a retailer known for innovative energy solutions, allows BASF to benefit from the latest advancements in renewable technologies, ensuring a reliable and efficient supply of green energy.
• Investment in Renewable Infrastructure: The commitment to 100% renewable energy not only supports BASF's emissions goals but also contributes to the development of renewable energy infrastructure in China, promoting economic growth within the renewable sector.
• Monitoring and Reporting: BASF's commitment involves ongoing tracking of its energy consumption and emissions. The PPA will enable precise monitoring, allowing the company to transparently report progress toward its net-zero targets.
• Support for Carbon Neutral Product Lines: The renewable energy supply will enable BASF to produce more carbon-neutral product lines. This diversification can cater to an increasing market demand for environmentally friendly materials, thereby broadening their product appeal.
• Collaboration for Renewable Energy Expansion: BASF's partnership with energy providers like CLP could foster collaborations that lead to the expansion of renewable energy projects, directly benefiting the renewable energy ecosystem in the region.
• Corporate Responsibility and Reputation: Committing to renewable energy through this PPA enhances BASF’s corporate responsibility image, which can strengthen relationships with stakeholders, customers, and investors who prioritize sustainability.
• Alignment with Global Goals: The PPA aligns with global sustainability efforts and initiatives such as the Paris Agreement, reinforcing BASF's position as a leader in the chemicals industry committed to reducing its environmental impact.