BASF Commissions Renewable Energy Steam Cracker in Zhanjiang
A Leap Forward in Sustainable Production
In a move that signals a transformative era for the global chemical industry, BASF has officially commissioned its new steam cracker at the Zhanjiang Verbund site in China. This milestone marks the heart of the company’s massive €10 billion investment, positioning the site as a global lighthouse for sustainable and highly integrated production.
The steam cracker is the fundamental starting point for many chemical value chains, producing essential building blocks such as ethylene and propylene. What sets the Zhanjiang facility apart is its unprecedented integration of renewable energy. By leveraging high-efficiency electrification and a dedicated green power supply, BASF is significantly reducing the carbon footprint of these primary chemicals, which serve as the foundation for modern materials, including sustainable plastics and high-performance polymers.
Decarbonizing the Chemical Value Chain
The commissioning of the cracker represents a technical triumph in the industry’s journey toward Net Zero. Traditionally, steam crackers are among the most energy-intensive assets in the chemical world, typically relying on fossil fuels for high-temperature heating. However, the Zhanjiang site is designed to be a pioneer in low-emission technologies.
“The start-up of the steam cracker in Zhanjiang is a decisive step in our strategy to combine growth with sustainability,” the company stated during the launch. By utilizing a power-to-heat approach and sourcing electricity from regional wind and solar farms, BASF is effectively decoupling chemical production from traditional carbon emissions. This transition is crucial for downstream industries that rely on these materials to create more sustainable consumer products.
Strengthening the Circular Economy
Beyond its energy profile, the Zhanjiang Verbund site utilizes a highly efficient “Verbund” system, where the by-products of one process serve as the raw materials for another. This closed-loop approach minimizes waste and maximizes resource efficiency.
As the site moves toward full operational capacity, the output from this renewable-powered cracker will feed into production lines for engineering plastics and bioplastic-adjacent materials, helping global customers meet their increasingly stringent ESG goals. This achievement solidifies BASF’s role as a leader in the transition to a circular, climate-neutral economy.
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