EU approves funding for BASF renewable hydrogen project

BRUSSELS—The European Commission has approved nearly $136 million (€135 million) in funding, by the German government, for BASF's project to produce renewable hydrogen at its Ludwigshafen headquarters by 2025.

Margrethe Vestager, European Commission competitions chief, said in an Oct. 3 statement that the 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.

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

The "direct grant" will support the construction and installation of a large-scale electrolyzer at BASF's Ludwigshafen site with the annual capacity of 54 megawatts; and to produce 5,000 metric tons per year (5 ktpa) of renewable hydrogen and 40 ktpa of oxygen.

Set for operation in 2025, the facility is expected to prevent the release of over 565,000 metric tons of carbon dioxide over the 15 years of expected operation of the electrolyzer.

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