BASF and Bo Feng sign a 25-year cooperation agreement to provide renewable energy power for the Zhanjiang integrated base
BASF and Broadway have signed a 25-year fixed-price renewable energy power purchase agreement under the Guangdong Province Renewable Energy Trading Rules to procure photovoltaic and wind energy projects for their new integrated base in Zhanjiang City, Guangdong Province of renewable electricity.
This is the first fixed-price long-term transaction in China's renewable energy power trading market. According to the agreement, Bofeng will build exclusive photovoltaic power plants and wind farms for BASF, and develop possible energy storage solutions to provide renewable energy power to BASF's Zhanjiang integrated base at a fixed price for a period of up to 25 years.
This cooperation with Bo Feng is an important step to further ensure the renewable energy power supply of the Zhanjiang integrated base. BASF is committed to building the Zhanjiang integrated base into a model of sustainable production, and aims to provide 100% renewable energy power for the entire Zhanjiang integrated base by 2025. This is an important step for BASF to achieve its climate neutrality goal, while also contributing to China's carbon reduction goals.
In this transaction, the two parties used the levelized cost of electricity (LCOE1) standard for the first time to price the renewable energy projects under development and construction, which set a precedent for the green power trading field in China.
1 LCOE is the ratio of the total cost of a renewable energy project (including capital and operating costs) to the total expected electricity generation over the life of the project.
BASF and Bo Feng sign a 25-year cooperation agreement to provide renewable energy power for the Zhanjiang integrated base
Net zero transformation is urgent and requires the concerted efforts of all parties. We are excited to work with a like-minded and forward-looking partner like BASF to help accelerate its carbon reduction goals.
The BASF Zhanjiang integrated base project was announced in July 2018 and officially launched in November 2019. After completion, it will be BASF's largest investment project so far, with a total investment of about 8 billion to 10 billion euros, and will be independently constructed and operated by BASF.
At the same time, the site will be BASF's third largest integrated production site in the world, after Ludwigshafen, Germany and Antwerp, Belgium. The entire integrated base is planned to be completed in 2030, and the first production unit will be put into operation in 2022.
