EU approves €130m funding for BASF renewable hydrogen project

Brussels - The European Commission has approved a €135-million funding, by the German government, for BASF’s project to produce renewable hydrogen at its Ludwigshafen headquarters by 2025.

“This €134 million measure enables Germany to help BASF step up its renewable hydrogen production capacities, thereby contributing to the greening of the chemical value chain and of the transport sector,” said the European Commission competitions chief Margrethe Vestager 3 Oct.

“The measure approved today will also help Germany replace fossil-based hydrogen in a hard-to-decarbonise industry, and reduce its dependence on imported fossil fuels, in line with the REPowerEU Plan,” she added.

The “direct grant” will support the construction and installation of a large-scale electrolyser at BASF's Ludwigshafen site with the annual capacity of 54 MW; and to produce 5 kilotonnes per annum (ktpa) of renewable hydrogen and 40ktpa of oxygen.

Set for operation in 2025, the facility is expected to prevent the release of over 565 kilotonnes of carbon dioxide over the 15 years of expected operation of the electrolyser.

In addition, to maximise the reduction of greenhouse gas emissions, renewable hydrogen will be produced solely with electricity stemming from renewable sources.