BASF increases its focus on renewable energy in the USA
This is intended to offset the carbon-intensive grid-supplied electricity being used at more than 20 of BASF’s manufacturing sites in several states across the country, from Texas to Michigan.
The combined agreements for the output of 250 MW of renewable generation capacity will result in the purchase of more than 660,000 megawatt hours (MWh) of electricity per year – the equivalent of electricity consumed by more than 90,000 average U.S. households. Based on EPA estimates, the VPPAs will offset more than 472,500 metric tons of CO2 emissions annually. With these agreements in place, the share of renewable energy in BASF’s total North American electricity consumption will rise to more than 25%.
“These agreements help us reach our clean energy goals in areas where the local electric utility does not supply adequate renewable power,” said Tobias Dratt, President, BASF North America. “At the same time, our financial commitment enables the realisation of large solar and wind power projects and adds clean energy to the grid.”
BASF aims to reduce its greenhouse gas emissions by 25% compared with 2018 by 2030 and achieve net-zero emissions by 2050. One important lever to bring down emissions is to replace fossil-based electricity with fossil-free electricity. BASF aims to secure the required amounts of renewable power it needs through a “make and buy” approach.