BASF in 25-year agreement with SPIC for renewable electricity for China site
German chemicals firm BASF has signed a 25-year power purchase agreement (PPA) with State Power Investment Corporation (SPIC) to purchase renewable electricity for its Zhanjiang Verbund site, which is under construction in Guangdong province, China. The PPA is a further step in the renewable energy partnership between BASF and SPIC following the framework agreement signed in March 2022.
This partnership is another significant milestone for BASF in securing 100% green power supply for the Zhanjiang Verbund site by 2025. 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. Under the latest agreement, SPIC will supply 1,000 GWh of renewable electricity annually for BASF’s Zhanjiang Verbund site. Supply will start in 2025 to coincide with the startup of the steam cracker and core of the Verbund site. The electricity will mainly be generated from dedicated offshore wind power and photovoltaic plants in Guangdong, China.
“BASF is taking another concrete step closer towards its ambitious global climate targets. We are very glad to enter into this long-term partnership with SPIC, one of the world’s largest photovoltaic power generation companies, new energy power generation enterprises and clean energy power generation enterprises, on our path towards net zero emissions globally by 2050. Construction at BASF’s new Verbund site in Zhanjiang is in full swing. Once completed, the site will be a role model for sustainable production and will contribute to the green transformation of chemical industry as well as to China’s carbon reduction ambitions,” said Dr. Markus Kamieth, member of the Board of Executive Directors, BASF SE.
“SPIC is committed to becoming a world-class clean energy enterprise and actively contributing to the green and low-carbon energy transformation. BASF is a global leading chemical company. Both companies have complementary technical advantages and share broad cooperation opportunities in green power supply, renewable energy development and green power conversion. Leveraging the win-win cooperation with BASF at the Zhanjiang Verbund site, SPIC aims to further promote the green and sustainable development of the local economy and society and make new contributions to coping with global climate change,” said Xu Shubiao, Deputy General Manager of SPIC Group.
The Zhanjiang Verbund site will be BASF’s largest investment with up to EUR10 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.
