First CO2-Neutral Production Site BASF Plans Largest Investment in India to Date
BASF and Adani Group have signed a Memorandum of Understanding (MoU), to evaluate a major joint investment in the acrylics value chain. This would be the German group’s largest investment in India to date.
Ludwigshafen/Germany; Ahmedabad/India — According to the MoU, the companies want to establish a joint venture with an investment totaling about $ 2.3 billion, in which BASF will hold the majority. The designated site would be located at Mundra port in Gujarat, India. A feasibility study will be completed by the end of 2019.
The potential investment comprises the development, construction and operation of production plants including propane dehydrogenation (PDH), oxo C4 complex (butanols and 2-ethylhexanol), glacial acrylic acid (GAA), butyl acrylate (BA) and potentially other downstream products. The products are predominantly for the Indian market to serve a wide range of local industries, including construction, automotive and coatings, whose growing demand is currently supplied via imports, thus supporting the “Make in India” initiative.
Gautam Adani, Chairman of the Adani Group, said that India continued to be a very large importer of petrochemicals given the rapid expansion of the middle class, and that this led to a significant outflow of precious foreign exchange. The new partnership would allow the country to produce in Mundra several of the chemicals along the C3 chemical value chain that are currently imported.
In line with BASF’s carbon neutral growth strategy, the chemical site in Mundra would be the company’s first CO2-neutral production site. The companies have developed an overall plan including new technologies and the supply of the site with 100 % renewable energy. Therefore, in addition to the investment outlined in this MoU, the chemical company plans to co-invest as a minority partner in a wind and solar park.