BASF to create new subsidiary for renewable energy activities
The wholly owned subsidiary’s business activities will focus on supplying the BASF Group in Europe with electricity from renewable energies, electricity trading activities in Europe and consulting for BASF and its Group companies in the field of renewable energies.
The company is based in Ludwigshafen and will be managed by Horatio Evers, who was previously responsible for the development of renewable energies at BASF SE.
BASF expects that by gradually replacing electricity from fossil generation, from own production as well as purchase agreements, and scaling innovative, climate friendly technologies to an industrial scale, its electricity consumption in Europe will increase from the current level of around 9 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.
BASF Renewable Energy GmbH is tasked with supplying the European sites with these additional volumes in line with demand.
To this end, it will initiate new additional projects to generate renewable energy from own production together with partners and conclude long term supply agreements with energy producers, known as Power Purchase Agreements (PPAs).
Projects already underway to generate electricity from renewable energy sources include the participation in the Hollandse Kust Zuid wind farm with Vattenfall, as well as the wind farm planned with RWE in the German North Sea.
Other major projects for the generation of electricity from renewable sources in Europe are under review or have already been initiated. In addition, BASF has recently signed a first long term PPA for the supply of offshore wind in Europe with Ørsted. Dr. Roland Merger continues to manage the wind farm projects with partners. ■