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BASF to power its first plants of Guangdong Verbund site with 100% renewable energy

March 10/2021

MOSCOW (MRC) -- BASF will power the first plants of its Guangdong Verbund site in Zhanjiang, Guangdong province, using 100% renewable electricity, as per the company's press release.

This came as a significant step for BASF to build its Guangdong Verbund site as a role model for sustainable production. With the first plant to be operational by 2022, the first plants will produce engineering plastics and thermoplastic polyurethanes (TPU) to serve the increasing needs of various growth industries in the South China market and throughout Asia.

In order to maximize the use of renewable electricity for the first plants, as early as the end of 2019, BASF pioneered to propose a new concept of Renewable Direct Power Purchase (R-DPP), and together with China Resources Power, actively supported Guangdong province in the development of the Renewable Electricity Marketization Policy.

“Sustainability is firmly anchored in our corporate strategy, and we are aiming to grow CO2-neutrally by 2030,” said Dr. Markus Kamieth, member of the Board of Executive Directors, BASF SE. “The strong engagement to promote the development of this new Renewable Electricity Marketization Policy will enable our new Verbund site in Zhanjiang to play an important role in BASF’s edging closer to our sustainability goals.”

“Through the pioneering effort in research and development of this completely new R-DPP concept, BASF has been proactively supporting the development of the Renewable Electricity Marketization Policy in Guangdong province,” said Dr. Klaus Welsch, President, Mega Projects Asia, BASF. “This will not only ensure the application of 100% renewable electricity in the first plants, but will also maximize the use of renewable electricity for the production of our whole Verbund site. Hence, we will be able to minimize the carbon footprint of ‘Made in Zhanjiang’ products and bring added value to our customers.”

With the active promotion under various parties, on February 26, 2021, Guangdong Development and Reform Commission issued the Pilot Implementation Plan of the Province’s Renewable Electricity Consumption Guarantee. Based on the requirements from this Implementation Plan, Guangdong Power Exchange Center will develop the Renewable Electricity Trading Rules Policy to provide guidance for the renewable electricity trading throughout the province. And BASF is expected to be the first user to purchase renewable electricity under the new trading rules policy.

“It demonstrates our continuous commitment to the sustainable development in Zhanjiang. By collaborating with local partners and the local community, we will bring forward more initiatives on carbon reduction and circular economy in the near future, thereby contributing to China’s carbon reduction goal,” added Haryono Lim, Senior Vice President, Senior Project New Verbund Site China, BASF, and General Manager, BASF Integrated Site (Guangdong) Co. Ltd.

Announced in July 2018 and officially commenced in November 2019, BASF Guangdong Verbund site will be the company’s largest investment with around USD10 billion upon completion and would be operated under the sole responsibility of BASF. The site would ultimately be the third-largest BASF site worldwide, following Ludwigshafen, Germany, and Antwerp, Belgium. The whole Verbund site is planned to be completed by 2030.

We remind, as MRC reported earlier, that in mid-February, BASF said it was restarting one of its steam crackers at its Ludwigshafen complex in Germany after operations were halted last Wednesday due to a technical issue. The naphtha cracker produces ethylene and propylene, and is one of two crackers on the site. One has a production capacity of 420,000 metric tons/year, with the other's capacity at 240,000 metric tons/year, according to IHS Markit data.

Ethylene and propylene are feedstocks for producing polyethylene (PE) and polypropylene (PP).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,220,640 tonnes in 2020, up by 2% year on year. Only shipments of low density polyethylene (LDPE) and high density polyethylene (HDPE) increased. At the same time, polypropylene (PP) shipments to the Russian market reached 1 240,000 tonnes in 2020 (calculated using the formula: production, minus exports, plus imports, excluding producers" inventories as of 1 January, 2020). Supply of exclusively PP random copolymer increased.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries.
Author:Margaret Volkova
Tags:PP, PE, poliuretan, PP random copolymer, propylene, LDPE, HDPE, ethylene, petrochemistry, footwear, recikling, BASF, Belgium, Germany, China, Russia.
Category:General News
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