German chemicals group BASF SE has officially received approval for a EUR 124.3 million (USD 136.2m) state grant from the German Federal Ministry for Economic Affairs and Climate Action. The funding, which includes a contribution of up to EUR 37.3 million from the government of the federal state of Rhineland-Palatinate, marks a crucial milestone for BASF's planned green hydrogen plant at its Ludwigshafen headquarters.
In collaboration with Siemens Energy, the Hy4Chem-EI project will progress to the construction phase following the funding approval. The venture involves the installation of a 54-MW proton exchange membrane electrolyser, capable of producing up to 8,000 metric tons of hydrogen annually using electricity sourced from renewable energy.
BASF's strategic use of the hydrogen output includes its role as a raw material for decarbonizing chemical production processes. Additionally, a portion of the hydrogen will be allocated for transport applications in the Rhine-Neckar Metropolitan Region. The Ludwigshafen electrolyser, slated to become one of Germany's largest upon activation, is scheduled for commissioning in 2025.
This funding approval follows Germany's endorsement by the European Commission (EC) approximately a year ago, securing a grant of EUR 134 million for the Hy4Chem-EI project. The collaboration between BASF and Siemens Energy underscores the growing significance of green hydrogen in advancing sustainable practices within the chemical industry, contributing to Germany's broader efforts in achieving environmental targets.
