German chemical giant BASF SE is poised to embark on a groundbreaking venture as it secures formal funding approval amounting to EUR 124.3 million (USD 136.2 million) for its envisaged green hydrogen plant at the Ludwigshafen headquarters.
This significant milestone propels the project, named Hy4Chem-EI, into the construction phase, marking a pivotal moment in BASF’s commitment to sustainable practices.
The financing, sanctioned by the German Federal Ministry for Economic Affairs and Climate Action, includes substantial backing from the government of the federal state of Rhineland-Palatinate, contributing up to EUR 37.3 million to the overall funding. This collaborative financial support underscores the strategic importance attributed to BASF’s green hydrogen initiative in advancing Germany’s climate and economic objectives.
BASF’s Hy4Chem-EI project is a collaborative effort with Siemens Energy, a global leader in energy technology. At the heart of the initiative lies the deployment of a cutting-edge 54-MW proton exchange membrane electrolyser. This state-of-the-art electrolyser is poised to harness renewable energy, with a specific focus on electricity, to produce a staggering 8,000 metric tons of green hydrogen annually.
The primary objective of the Hy4Chem-EI project is to leverage the produced green hydrogen as a raw material for BASF’s chemical production processes. By integrating green hydrogen into its operations, BASF aims to substantially reduce carbon emissions, contributing to its overarching sustainability goals. This move aligns with the broader industry trend of embracing green hydrogen as a key driver for decarbonization across sectors.
While the core focus remains on decarbonizing internal processes, a significant portion of the produced green hydrogen is earmarked for transport applications within the Rhine-Neckar Metropolitan Region. This dual-purpose approach demonstrates the versatility of green hydrogen, not only as an industrial input but also as a clean energy source for transportation, addressing multiple facets of the sustainability challenge.