BASF 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.

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.”

Dr. Dipeng Chen, head of Envision Energy's power market, said: “As the load management and balance service provider in this sleeved longterm 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.”