German chemical giant BASF plans to use 100% renewable electricity to power the first plants at its Zhanjiang Verbund in southern China. The company has signed a deal to purchase 100% renewable electricity from China Resources Power. These new plants will produce engineering plastics and thermoplastic polyurethanes (TPU) to meet growing demand in China and other markets across Asia. BASF said that the use of renewable electricity would cut the carbon footprint of products made in Zhanjiang.
BASF’s purchase of renewable electricity from China Resources Power is the first to be done under Guangdong’s new Renewable Energy Trading Rules. Under the deal, China Resources Power will build dedicated renewable electricity sources for BASF. The German company also vowed that it would continue using renewable electricity in the site’s next phases as part of its 2050 carbon-neutrality target.
BASF’s Zhanjiang Verbund project was first announced in July 2018, with construction commencing in November 2019. The $10-billion site is BASf’s largest investment and will be the company’s third-largest site worldwide. The whole Verbund site is slated for completion by 2030, with the first plants expected to start operations by 2022. BASF will solely operate the massive site.
