German chemical company BASF has commissioned a green hydrogen production facility at its plant in Ludwigshafen. The total investment in the project amounted to €149.3 million. Of this, €124.3 million was provided by the German government and the state of Rhineland-Palatinate as part of the support program for “important projects of common European interest” (IPCEI). BASF invested €25 million in the project.

The 54 MW electrolyzer, supplied by Siemens Energy, consists of 72 stacks. The planned production volume of green hydrogen is around 8,000 tons per year. This will reduce greenhouse gas emissions at BASF’s main plant by 72,000 metric tons per year. Most of the hydrogen produced will be used to replace gray hydrogen consumed in the production of ammonia, methanol and vitamins. BASF currently produces around 250,000 tons of hydrogen at its Ludwigshafen site, either from natural gas or as a by-product of other chemical processes. The green hydrogen produced by the new electrolyzer will therefore account for 3.2% of current consumption.

In addition to use in chemical production, BASF plans to supply green hydrogen for hydrogen transport in the Rhine-Neckar region. Katja Scharpwinkel, Director of the Ludwigshafen site and Member of the BASF Management Board, noted that the commissioning of the electrolyzer allows the company to support customers in achieving their climate goals by offering products with a lower carbon footprint.

In Europe, investments in projects to develop the hydrogen economy continue. In February 2024, a 20 MW green hydrogen plant was commissioned in Finland. In Germany, construction of a 100 MW plant has begun at the site of the Salzgitter steel company. French company TotalEnergies has signed an agreement with Air Liquide to develop projects to produce 45,000 tons of green hydrogen per year for refineries in Belgium and the Netherlands.