BASF Receives Funding Approval for Electrolysis Plant

Nov. 27, 2023
Proton exchange membrane electrolyzer expected to produce up to 8,000 metric tons of hydrogen per year.

BASF received funding approval from Germany to build an electrolyzer that will allow the company to produce up to 8,000 metric tons of hydrogen per year. 

The proton exchange membrane electrolyzer (PEM), in cooperation with Siemens Energy, will enable water electrolysis at the Ludwigshafen site.  The Hy4Chem-EI project will use electricity from renewable energy sources to will produce CO2-free hydrogen.

BASF said once operational, the hydrogen produced using renewable electricity will reduce greenhouse gas emissions at the site by up to 72,000 metric tons annually. BASF will primarily use this hydrogen as a raw material in the manufacture of products with a reduced carbon footprint. In addition, the company will supply hydrogen for mobility in the Rhine-Neckar Metropolitan Region to support the ramp-up of a hydrogen economy in the area.

BASF and Siemens Energy plan to begin operating the water electrolysis plant in 2025. In cooperation with the State of Rhineland-Palatinate, the German Federal Ministry for Economic Affairs and Climate Protection is contributing up to 124.3 million euros (approximately $136 million) to the project.

At the Ludwigshafen site, BASF uses around 250,000 metric tons per year pf hydrogen, which it currently produces using steam reforming or occur as coupling products and byproducts.