Chemical and materials company BASF announced today that it has entered into new virtual power purchase agreements (VPPAs), sourcing 250 MW of wind and solar power to help offset to help power more than 20 of its U.S. manufacturing sites.
With the new agreements, more than 25% of BASF’s total North American electricity consumption will be made up of renewable electricity.
Tobias Dratt, President, BASF North America, said:
“These agreements help us reach our clean energy goals in areas where the local electric utility does not supply adequate renewable power. At the same time, our financial commitment enables the realization of large solar and wind power projects and adds clean energy to the grid.”
BASF will purchase 100 MW of power generated by energy company Dawn Solar, and an additional 150 MW of renewable energy capacity will be added through transactions with energy services provider EDF Energy Services.
More than 660,000 MWh of electricity will be purchased per year as a result of the combined agreements. According to projections by the Environmental Protection Agency (EPA), the VPPAs will offset more than 472,500 metric tons of CO2 emissions annually.
The PPA follows the announcement last year by BASF of a series of climate goals, including a target to achieve net zero Scope 1 and 2 emissions by 2050, along with plans to invest up to €1 billion by 2025 to reach its targets.
Michael Heinz, Member of the Board of Executive Directors, BASF SE, and Chairman and CEO of BASF Corporation, said:
“Renewable energy is an essential tool to reach BASF’s ambitious goal of net zero emissions by 2050. We are committed to further improving our energy footprint in the region and we are eager to drive the energy transition for chemical manufacturing in North America.”