German chemical giant BASF plans to run the first plants at its Guangdong Verbund site in Zhanjiang, China’s Guangdong province, entirely on renewable electricity, making it a role model for sustainable production. The site’s first plants are expected to enter service by 20220, producing thermoplastic polyurethanes and engineering plastics.
BASF proposed a new concept of Renewable Direct Power Purchase (R-DPP) in 2019 to maximize the use of renewable electricity at those plants. It also works with China Resources Power to support the development of the Renewable Electricity Marketization Policy in Guangdong province. According to a company executive, the Renewable Electricity Marketization Policy will also help BASF to minimize the site’s carbon footprint.
BASF also plans to be the first buyer to purchase electricity under Guangdong’s Renewable Electricity Trading Rules Policy. Haryono Lim, BASF’s senior VP, said that the company would accelerate circular economy and carbon reduction initiatives in the near future to help China’s climate goals.
BASF Guangdong Verbund site was announced in July 2018 and officially commenced in November 2019. The $10-billion complex is BASF’s largest-ever overseas investment. It will be the company’s third-largest manufacturing sites after Ludwigshafen in Germany and Antwerp in Belgium. All units at the Guangdong Verbund site are expected to be completed by 2030.
