BASF secures funding for CO2-free steam heat pump in Ludwigshafen

Key highlights
  • The German Federal Ministry is funding the project with up to €310 million.
  • The heat pump will generate up to 500,000 metric tons of CO2-free steam annually.
  • Commissioning of the plant is scheduled for 2027.
  • The steam will primarily be used for formic acid production.
Related project For subscribers
Milestones, plant data, involved companies (owners, investors, licensors, contractors) and news — kept up to date.
BASF Ludwigshafen steam cracker green transformation · Germany
Under Construction
2024
2025-10
—
Operational / Completed · expected date for subscribers

Project Overview

BASF has received approval for funding from the German Federal Ministry for Economic Affairs and Climate Action to construct the world's largest industrial heat pump at its Ludwigshafen site. This project aims to significantly reduce CO2 emissions by generating CO2-free steam, contributing to BASF's climate protection goals.

Technical Details

The planned heat pump will have a capacity of up to 500,000 metric tons of steam per year. It will utilize waste heat from the cooling and cleaning of process gases in one of the site's steam crackers. Powered by renewable electricity, the heat pump is expected to reduce greenhouse gas emissions by up to 98% for the steam used in formic acid production. A smaller portion of the steam will be distributed to other BASF production plants via the site's steam network.

Funding and Timeline

The German Federal Ministry is contributing up to €310 million to the project under the Carbon Contracts for Difference funding program. The plant is scheduled to be commissioned in 2027, marking a significant step in BASF's efforts to achieve net-zero CO2 emissions by 2050.

Energy and Sustainability

Steam is a crucial energy source in the chemical industry, used for various processes such as drying, heating, and distillation. At Ludwigshafen, BASF already meets half of its steam requirements through low-carbon processes. The remaining steam is currently generated by gas and steam power plants. This project is part of BASF's broader green transformation strategy, which includes using renewable raw materials and electricity, as well as developing new technologies to reduce fossil fuel use in energy production.

chemXplore Weekly

The week’s project milestones and project news from the chemical industry, free every Wednesday.

Free. One email a week. Unsubscribe any time.

Related articles

8 April 2026
BASF: 95‑t plate falling‑film evaporator arrives at Ludwigshafen

Heat pump under construction will use waste heat and renewable electricity to generate ~500,000 t/yr CO₂‑free steam (50 MW), cutting ~100,000 t CO₂/yr for formic acid production; commissioning mid‑2027.

24 September 2025
BASF Begins Construction of Major CO2-Free Steam Heat Pump at Ludwigshafen

The project will cut 100,000 tons of CO2 annually, using renewable energy for steam production, with completion set for mid-2027.

18 March 2026
BASF raises European formic acid prices by €250/MT

Increase effective immediately or as contracts permit. Formic acid used to acidify and microbially stabilize feed, silage and drinking water, and as a chemical process agent/intermediate.