By Giulia Petroni 
 

BASF SE and RWE AG on Friday said they would cooperate to explore the use of renewable energy for the production process of chemicals to advance the industry's transition away from fossil fuels.

The German companies' project involves building an offshore wind farm with a capacity of two gigawatts to provide renewable electricity and allow the production of carbon dioxide-free hydrogen at the Ludwigshafen chemical site in Germany.

The objective is to implement the project without subsidies by 2030, according to RWE. The utility company added that it aims to use 20% of the green electricity from the new offshore wind farm to produce hydrogen and build an electrolyzer with a capacity of around 300 megawatts.

In terms of regulatory framework, the companies said there will need to be additional tendering processes for offshore projects before 2030 and sites specifically designated for tenders focused on industrial transformation processes.

BASF previously said it aims to reduce its global CO2 emissions by 25% by 2030 compared with 2018 levels, and pledged to become climate-neutral by 2050.

 

Write to Giulia Petroni at giulia.petroni@wsj.com

 

(END) Dow Jones Newswires

May 21, 2021 07:04 ET (11:04 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.
BASF (XE:BAS)
Historical Stock Chart
From Nov 2021 to Dec 2021 Click Here for more BASF Charts.
BASF (XE:BAS)
Historical Stock Chart
From Dec 2020 to Dec 2021 Click Here for more BASF Charts.