ENGIE and BASF sign purchase agreement for electricity from renewable sources in Europe
- 25-year long-term agreement
- Total volume is up to 20.7 terawatt hours
- CO2-free electricity for low-emission chemical production
ENGIE and BASF have signed a 25-year Power Purchase Agreement (PPA) from renewable sources in Europe. Under the PPA, which will enter into force on 1 January 2022, ENGIE BASF will be supply a total of up to 20.7 terawatt hours renewable electricity during the contract period.
Several European BASF sites will be supplied from the ENGIE portfolio for renewable electricity in Europe. Initially, the electricity will come from onshore wind farms located in various locations in Spain, in which ENGIE is involved as equity investor or energy manager. Later on, ENGIE will have the possibility to supply the electricity either from existing Spanish installations or from future onshore and offshore wind farms.
"BASF and ENGIE have been working together for many years. With this agreement, we are taking an important next step on our way to climate-neutral chemical production. Replacing fossils with renewable electricity is a crucial lever. This long-term contract with a major player in the European energy market secures BASF significant amounts of electricity from renewable sources. At the same time, BASF is becoming a pioneer for green energy and is launching additional projects for renewable energy in Europe," says Dr. Martin Brudermüller, CEO of BASF SE.
Catherine MacGregor, CEO of ENGIE, said: "Thanks to our large, diverse and growing portfolio of renewable energies, ENGIE can supply carbon-free energy and electricity to its customers, including leading multinational companies such as BASF. This shows that we are able to support our customers on their way to CO2 neutrality – an achievement we are very proud of. This agreement will bring lasting economic and environmental benefits to both partners in the long term."
At the end of July 2021, BloombergNEF, the benchmark for strategic analysis in the field of energy transformation, placed ENGIE first in terms of the PPAs signed with companies. By September this year, ENGIE has already concluded new power purchase agreements totaling 1.9 gigawatts (compared to 1.5 gigawatts in 2020) to supply large industrial and technology companies with electricity from renewable energy sources.
The agreement is in line with ENGIE's long-term strategy of advancing the development of renewable energies and BASF's climate protection targets, which aim to reduce its greenhouse gas emissions by 25 percent by 2030 compared to 2018 and achieve net zero emissions by 2050.
From 2030, BASF intends to introduce low-emission technologies such as CO2-free processes for the production of hydrogen and electrically heated steam crackers, which will significantly increase their need for renewable electricity.
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About BASF
Chemistry for a sustainable future, that is what BASF stands for. We combine business success with the protection of the environment and social responsibility. More than 110,000 employees in the BASF Group contribute to the success of our customers from nearly all industries and in almost all countries of the world. We have grouped our portfolio into six segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition &Care and Agricultural Solutions. In 2020, BASF achieved worldwide sales of 59 billion euros. BASF shares are traded on the Frankfurt Stock Exchange (BAS) and as American Depositary Receipts (BASFY) in the USA. For more information see: basf.com.
About ENGIE
The ENGIE Group is a world leader in the area of low-carbon energy and services. Together with our 170,000 employees, our customers, partners and stakeholders, we are committed to accelerating the transition to a CO2-neutral world by reducing energy consumption and offering more environmentally friendly solutions. Inspired by our corporate purpose ("raison d’être"), we balance economic performance with a positive impact on people and the planet by building on our core businesses (gas, renewable energy, services) to offer our customers competitive solutions. ENGIE's turnover in 2020 was 55.8 billion euros. The Group is listed on the Paris and Brussels stock exchanges (ENGI) and is represented in the main financial indices (CAC 40, DJ Euro Stoxx 50, Euronext 100, FTSE Eurotop 100, MSCI Europe) and non-financial indices (DJSI World, DJSI Europe and Euronext Vigeo Eiris - World 120, Eurozone 120, Europe 120, France 20, CAC 40 Governance).