BASF signs a power purchase agreement with CLP and Envision Energy, to accelerate renewable electricity supply among its three manufacturing sites in Jiangsu province

• BASF signs a 10-year agreement to purchase renewable electricity for its three manufacturing sites in Jiangsu province
• First time to adopt a sleeved PPA, and all the supplied photovoltaic power comes from the sources within the province

Nanjing, China – October 10, 2024 – BASF today signs a 10-year power purchase agreement with CLP China (CLP) and Envision Energy under the renewable energy trading rules in Jiangsu province, to purchase renewable energy for its Nanjing site, Rudong site, and Zhenjiang site in Jiangsu province. With this agreement and other related cooperations, BASF will further increase the use of renewable energy in China, moving towards its goal to achieve net-zero carbon emissions by 2050.

“The rapid development of China’s renewable energy market provides a foundation to support us in increasing the use of renewable energy. Today, our three manufacturing sites in Jiangsu province will complete the signing of a 10-year renewable power purchase agreement, enabling carbon emissions reduction in our operations. This will also allow us to launch products with reduced carbon footprint, and support our downstream customers’ green transformation,” said Jan Peter Bredehoeft, Senior Vice President, Operations & Site Management Greater China, BASF.

In the transaction, BASF adopts an innovative sleeved long-term power purchase agreement (PPA) model for the first time. With CLP, the power generation party and Envision Energy, the power retailer, the three parties are exploring a new mechanism to achieve the green power supply. Today, BASF’s Nanjing site, Rudong site, and Zhenjiang site have already achieved 100% electricity consumption from renewable energy. Under this model, the three sites aim to source their electricity supply from 100% renewable energy in the next 10 years.

As one of the largest private power companies in Asia-Pacific, CLP will serve as a green power supplier in this cooperation. Through its three photovoltaic projects in Wuxi, Huai’an, and Yangzhou, Jiangsu, it will provide renewable energy to BASF's three production sites in Jiangsu province. Roger Chen, CLP Holdings Managing Director China, said: “CLP is honoured to cooperate with BASF and Envision Energy in the fields of renewable energy and green electricity, and to support BASF in achieving its net-zero carbon emissions goal. CLP focuses on developing clean and renewable energy, and providing green energy solutions to corporate customers. We look forward to working with more companies and contributing further to Jiangsu's low-carbon energy transformation.”

Envision Energy, a global leader in green technology, will serve as the power retailer in this cooperation, helping achieve green electricity settlement between power generators and users. Dr. Dipeng Chen, head of Envision Energy's power market, said: “As the load management and balance service provider in this sleeved long-term PPA, Envision Energy will fully leverage the resource adjustment and custodial operating capabilities of the company to help power generation companies and power users reduce market risks. We are excited to partner with BASF and CLP Group to promote the development of renewable energy through this innovative business model.”

BASF is actively promoting the use of renewable energy among its operations in Greater China. In December 2023, BASF’s Nanjing site was among the first batch of recipients of Green Electricity Certificate Transaction Vouchers issued by the National Energy Administration.

About BASF in Greater China

BASF has been a committed partner to Greater China since 1885. With large production sites in Shanghai, Nanjing, Chongqing and Zhanjiang, as well as a regional research and development hub in Shanghai, BASF is a major foreign investor in the country’s chemical industry. BASF posted sales of approximately €9.4 billion in 2023 to customers in Greater China and employed 12,115 people as of the end of the year. For further information, please visit: www.basf.com/cn/en.

About BASF

At BASF, we create chemistry for a sustainable future. We combine economic success with environmental protection and social responsibility. More than 112,000 employees in the BASF Group contribute to the success of our customers in nearly all sectors and almost every country in the world. Our portfolio comprises six segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care and Agricultural Solutions. BASF generated sales of €68.9 billion in 2023. BASF shares are traded on the stock exchange in Frankfurt (BAS) and as American Depositary Receipts (BASFY) in the United States. Further information at www.basf.com.