BASF 2025: Special emollient plant to launch in Germany, strikes deal for renewable electricity in China

09 Oct 2023 --- BASF has invested in a new plant in Düsseldorf (Germany) to produce emollients for skin care and sun protection products. At the same time, the chemicals giant has signed a 25-year agreement with Chinese SPIC (State Power Investment Corporation) to purchase renewable electricity for its Zhanjiang Verbund site (China).

“BASF sees the growth potential in specialties for the personal care industry in Europe and, as the market leader, we are consistently investing to support this growth with our customers,” comments Mary Kurian, president of BASF’s Care Chemicals division, on the new plant.

Upgrading production capacity
The company’s production site in Düsseldorf already specializes in cosmetics and personal care ingredients, offering emollients to be used in formulations. BASF is now expanding it by adding a “new reactor and upgrade of the distillation units.”

The additions are expected to increase the facility’s production capacity to fulfill the demand for specialty products.

The facilities will begin operation in the third quarter of 2025.

EU market demands drive expansion
BASF notes that octocrylene-free sun protection is increasing in Europe. Last month, France sought comments on draft regulation to determine whether the UV filter requires restriction measures regarding possible environmental risks.BASF invests in capacity expansion for cosmetic ingredients in Düsseldorf.

This case falls under special emollients as they enable silicone-free skin care and sun care protection. “Emollients bind and maintain skin moisture and improve the sensory properties of a care product,” shares BASF.

“The capacity is now being expanded in a targeted manner to meet growing market demand with an investment in the mid-double-digit million range.”

According to BASF, its Düsseldorf facility is the third largest site in Europe, producing and developing cosmetic ingredients. 

Green deal in China
In further developments, SPIC will supply 1,000 GWh of renewable electricity to BASF every year starting in 2025. Additionally, the company will secure 100% green power to supply its Zhanjiang Verbund site by the same year.

“BASF is taking another concrete step closer toward its ambitious global climate targets. We are glad to enter into this long-term partnership with SPIC, one of the world’s largest photovoltaic power generation companies, new energy power generation enterprises and clean energy power generation enterprises, on our path toward net zero emissions globally by 2050,” says Dr. Markus Kamieth, member of the Board of Executive Directors, BASF.

“Construction at BASF’s new Verbund site in Zhanjiang is in full swing. Once completed, the site will be a role model for sustainable production and contribute to the green transformation of the chemical industry and China’s carbon reduction ambitions.”

The electricity will be sourced from offshore wind power and photovoltaic plants in Guangdong, China.

Boosting Sino-German environmental agreements
The 25-year power purchase agreement is a step forward between BASF and SPCI’s agreement signed last year in March. The Zhanjiang Verbund site will be BASF’s most significant investment with up to €10 billion upon completion.

Moreover, the deal nods to a “successful” Sino-German low-carbon initiative following the letter of intent signed by BASF and China National Development and Reform Commission in June this year.

“SPIC is committed to becoming a world-class clean energy enterprise and actively contributing to the green and low-carbon energy transformation. BASF is a global leading chemical company. Both companies have complementary technical advantages and share broad cooperation opportunities in green power supply, renewable energy development and green power conversion,” comments Xu Shubiao, deputy general manager at SPIC Group.

“Leveraging the win-win cooperation with BASF at the Zhanjiang Verbund site, SPIC aims to promote further the green and sustainable development of the local economy and society and make new contributions to coping with global climate change.”

In related news, a new citral plant at BASF’s Verbund site in Zhanjiang, China, and menthol and linalool downstream plants at its Verbund site in Ludwigshafen, Germany, are expected to boost the company’s aroma ingredients portfolio from 2026 onward.

BASF will bring additional alkoxylation capacity on stream in Antwerp, Belgium and Ludwigshafen, Germany, starting from the year's second quarter.

By Venya Patel