BASF signed a 25-year agreement with GEDI to purchase renewable electricity for its Zhanjiang Verbund site
- The agreement concludes the needed deals enabling the 100% renewable electricity supply for the BASF Zhanjiang Verbund site
- Another concrete step towards building BASF Zhanjiang Verbund site as a lighthouse project of sustainable development
Zhanjiang, China – On April 12, 2024, BASF signed a 25-year power purchase agreement (PPA) with China Energy Engineering Group Guangdong Electric Power Design Institute Co., Ltd. (GEDI) to purchase renewable electricity for its Zhanjiang Verbund site. The PPA is a further step in the renewable energy partnership between BASF and GEDI following the Letter of Intent (LOI) signed in September 2023.
This agreement marks another important milestone for BASF to successfully conclude the needed deals enabling the 100% renewable electricity supply for the Zhanjiang Verbund site. It is also another successful Sino-German low-carbon initiative following the Letter of Intent (LOI) signed by BASF and China National Development and Reform Commission (NDRC) in June 2023.
“BASF is committed to achieving net zero carbon emissions by 2050 globally. The long-term partnership with GEDI represents another concrete step towards our ambitious climate targets,” said Marko Murtonen, Senior Vice President, New Verbund Site China, BASF & General Manager, BASF Integrated Site (Guangdong) Co. Ltd. “We are dedicated to building our Zhanjiang Verbund site as a lighthouse project for low carbon and sustainable development in the global chemical industry. Together with GEDI, we will have a great opportunity to foster more low carbon initiatives and renewable energy projects to further contribute to Guangdong’s ‘new quality productive force’.”
Alongside the PPA, BASF and GEDI are also exploring further collaboration in the low carbon sector.
Background information on BASF’s new Verbund site in Zhanjiang
The Zhanjiang Verbund site will be BASF’s largest investment to date with around €10 billion upon completion. It will be operated under the sole responsibility of BASF and will be the company’s third-largest Verbund site worldwide, following Ludwigshafen, Germany, and Antwerp, Belgium.
About BASF in Greater China
BASF has been a committed partner to Greater China since 1885. With large production sites in Shanghai, Nanjing, Chongqing and Zhanjiang, as well as a regional research and development hub in Shanghai, BASF is a major foreign investor in the country’s chemical industry. BASF posted sales of approximately €9.4 billion in 2023 to customers in Greater China and employed 12,115 people as of the end of the year. For further information, please visit www.basf.com/cn/en.
About BASF
At BASF, we create chemistry for a sustainable future. We combine economic success with environmental protection and social responsibility. Around 112,000 employees in the BASF Group contribute to the success of our customers in nearly all sectors and almost every country in the world. Our portfolio comprises six segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care and Agricultural Solutions. BASF generated sales of €68.9 billion in 2023. BASF shares are traded on the stock exchange in Frankfurt (BAS) and as American Depositary Receipts (BASFY) in the United States. Further information at www.basf.com.
