BASF's Commitment to Sustainability Transformation
BASF revealed plans to invest in a new citral plant at its Verbund site in Zhanjiang, China, along with menthol and linalool downstream plants at its Verbund site in Ludwigshafen, Germany.
BASF anticipates these plants to become operational from 2026 onwards as they cater to the rising global demand for flavour and fragrance products. BASF's dedication to sustainability transformation is also a driving factor behind this investment.
BASF's investment will enhance and broaden the company's aroma ingredients citral value chain in Germany and Malaysia while supporting customer growth prospects. Furthermore, the new citral plant in China will reinforce BASF's presence in crucial growth areas and augment the production of various aroma ingredients and downstream products globally. This investment will also escalate BASF's citral production capacity to 118,000 metric tonnes per annum.
“The expansion of our global production network benefits our customers in the flavour and fragrance industry by further strengthening supply security. Investing in Zhanjiang is also a significant step towards sustainable production and addressing our customers’ demands for products with a lower carbon footprint,” said Thilo Bischoff, Senior Vice President, BASF Aroma Ingredients.
By fully integrating the new plants into the Verbund sites in China and Germany, BASF can efficiently create synergies and optimally utilise resources. At the Zhanjiang Verbund site, the company will further expedite its plan to power the entire site with renewable electricity and aims to accomplish 100% renewable energy by 2025.
Additionally, advanced automation and process technologies will be implemented at the Zhanjiang site for superior plant operation, reducing energy consumption and emissions. The integration of the new menthol and linalool downstream plants into the Ludwigshafen site will utilise existing Verbund structures and cutting-edge production technologies.
“BASF Zhanjiang Verbund site is set to be a role model for sustainable production, which was a key decision factor in the location of the new citral plant. Along with the integration of our new downstream plants into the Ludwigshafen production Verbund site, our commitment to sustainability is central to our business and investments,” said Bischoff. “Reducing the CO2 emissions in our value chain and the product carbon footprint of our aroma ingredients portfolio, as well as introducing renewable feedstock is of utmost importance for the Aroma business.”
BASF is addressing customers' demands for renewable aroma ingredients by utilising its biomass balance approach. Additionally, the company plans to develop its fermentation-based portfolio further in its subsidiary, Isobionics, based in Geleen, the Netherlands, to meet the increasing need for natural aroma ingredients.