BASF and RWE plan to power chemical plant with offshore wind
By:
Tom Russell
21/05/2021
RWE
Representatives from BASF
and RWE presented a project idea for industrial chemical production which
includes the use of offshore wind energy.
Dr. Martin Brudermüller (BASF) and Dr. Markus Krebber (RWE), accompanied
by Chairman of the Mining, Chemical and Energy Industries Union (IG BCE)
Michael Vassiliadis, unveiled the project which envisions an additional
offshore wind farm with a capacity of 2 GW to provide the Ludwigshafen
chemical site with green electricity and enable CO2-free production of
hydrogen. The aim is to electrify the production processes for basic chemicals,
which are currently based on fossil fuels.
This will involve utilising CO2-free technologies such as electrically
heated steam cracker furnaces to produce petrochemicals. BASF is already
working with partners on developing these technologies. To advance the
joint project, the CEOs of BASF and RWE have signed a letter of intent
covering a wide-ranging cooperation for the creation of additional capacities
for renewable electricity and the use of innovative technologies for climate
protection.
“Together we want to accelerate the transition to a CO2-neutral chemical
industry through electrification and through the use of CO2-free hydrogen,”
said Brudermüller and Krebber.
Michael Vassiliadis,
Chairman of the Mining, Chemical and Energy Industries Union (IG BCE),
commented: "Here, two strong partners are making climate-friendly
transformation and energy transition tangible and concrete. We stand behind
this major project because it can be a symbol for the innovative power
of industry and its employees. In many places, they are working with great
passion and expertise to shape the transformation. They deserve all the
support they can get.“
These plans could result in the avoidance of around 3.8 million metric
tons of CO2 emissions per year, of which 2.8 million tons would be realigned
directly at BASF in Ludwigshafen. No public subsidies would be needed for
the construction of the wind farm.
Martin Brudermüller, Chairman of the Board of Executive Directors of BASF
SE, stressed: “Without the availability of sufficient volumes of electricity
from renewable sources at competitive prices, our future transformation
will not be possible! This task is only achievable with innovative and
intensive cooperation between politics and industry. And it requires collaboration
across the value chains. In our partnership between RWE as a leading company
in power generation and BASF in chemicals, we bring together the necessary
prerequisites and the will to shape things.”
Markus Krebber, CEO of RWE, added: “Coupling a new offshore wind farm
already in the planning stage to an industrial customer such as BASF, who
will convert its production to green electricity and hydrogen on this basis,
would be a first for Germany. The realization of our proposal would represent
a true acceleration of the expansion of renewable energies. Of course,
there are still some open questions, but we want to push this forward –
the faster, the better. This is how we will shape the energy transition.”
For this to succeed, there will need to be a tendering process for offshore
project sites where the current plans only foresee use after 2030. The
companies instigate that these sites should be specifically designated
for tenders focused on industrial transformation processes. Another important
factor: Green electricity should not be subject to EEG levy. In addition,
there is currently no regulatory framework for CO2-free hydrogen production.
“We are convinced: Climate-neutral industrial production ‘made in Germany’
ensures that value added and employment remain in Germany and opens up
export opportunities for new technologies,” said Brudermüller and
Krebber.
