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Climate change: BASF, Covestro clinch renewable energy deals in China to achieve emission-reduction goals
- Germany’s BASF wants at least 50 per cent of its power requirements for its new Chinese plant to come from renewable sources by 2025
- BASF to buy wind power from China Resources Power, while Covestro signs deal with solar power producer Datang Wuzhong New Energy
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Energy-intensive multinational chemical companies in China are securing renewable energy supplies to help them keep up with decarbonisation demands as part of their global climate commitments.
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Germany’s BASF, the world’s largest chemicals producer by sales last year, is in discussions with several key energy sector players to help meet its target of using at least half of the power requirements of its new plant in Zhanjiang, Guangdong province to be from renewable sources by the end of 2025.
By 2030, when the site is fully operational, it wants the US$10 billion plant – the 156-year-old company’s largest investment project ever – to be completely powered by renewable sources. BASF aims to reduce its global greenhouse gas emissions by 25 per cent by 2030 from 2018, and achieve net-zero emissions by 2050.
“This also reflects our optimism that there will be enough renewable energy available in south China by that time, with strong support from government authorities,” Haryono Lim, general manager of BASF Integrated Site (Guangdong), told the Post in written comments.
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The first wholly foreign-funded petrochemicals complex will come on stream next year amid growing demand for key manufacturing materials in the world’s largest chemicals market.
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