BASF and ENGIE Signed a Power Purchase Agreement for Renewable Energy

Date: 30/11/2021
Categories: Corporate
Wind farm

The 25-year Power Purchase Agreement will provide BASF with 20.7 terawatt hours of renewable electricity.

BASF and ENGIE have recently signed a 25-year Power Purchase Agreement (PPA) for renewable energy in Europe that will become effective on 1st January 2022. ENGIE will provide BASF with up to 20.7 terawatt hours of renewable electricity in total throughout the term of the agreement.

Several BASF sites located in Europe will be supplied from ENGIE’s renewable project portfolio in Europe: the electricity will initially come from onshore wind farms in Spain , while later ENGIE will have the option to either deliver power from existing Spanish assets or from future onshore and offshore wind farms.

“BASF and ENGIE have been working together for many years. With this agreement we take a significant next step on our path to climate-neutral chemical production. One important lever is replacing fossil-based electricity with renewable electricity. This long-term contract with a key player in the European energy market secures substantial volumes of electricity from renewable sources for BASF. At the same time, it makes BASF an enabler for green energy triggering additional projects for renewable power in Europe,” stated the Chairman of the Board of Executive Directors at BASF SE, Dr. Martin Brudermüller.

“Thanks to our large, diverse and growing portfolio of renewable energy production, ENGIE is able to provide carbon-free energy and electricity to its clients, including leading multinational companies such as BASF. It demonstrates our ability to accompany them on their own path to carbon neutrality, an achievement we are very proud of. This contract will deliver steady economic and environmental value in the long run for both partners,”added Catherine MacGregor, the CEO of ENGIE.

BASF aims to reduce its greenhouse gas emissions by 25% by 2030 compared with 2018 and to achieve net-zero emissions by 2050. Moreover, the company is implementing low-emission technologies – such as CO2- free methods for the production of hydrogen and electrically heated steam crackers – which will significantly increase its demand of renewable power.

Tags: BASF