Behind Siemens & BASF’s World-First Green Hydrogen Project
BASF has commissioned a 54MW water electrolyser at its Ludwigshafen site that will become Germany's largest proton exchange membrane (PEM) electrolyser.
The facility, built over approximately two years, can produce up to one tonne of CO₂ -free hydrogen hourly with an annual capacity reaching 8,000 tonnes.
Developed in partnership with Siemens Energy, the system incorporates 72 stacks – modules where the electrolysis process occurs – directly integrated into the site's existing production and infrastructure systems.
This integration represents a world-first achievement in embedding hydrogen production technology within a chemical manufacturing environment.
“This water electrolysis plant is not only the largest of its kind in Germany, but it also ranks among the top ten worldwide,” says Stephan Kothrade, Member of the Board of Executive Directors and CTO of BASF SE.
“We can produce up to 8,000 tons per year, and this is achieved without fossil feedstocks, using only water and electricity from renewable sources.”
Funding and investment for the project
The project received substantial governmental support through the IPCEI Hydrogen initiative, with funding of up to US$134.6m.
Of this amount, the Rhineland-Palatinate state government contributed approximately US$40.4m, while BASF invested around US$27.1m.
"I am delighted that the federal government's efforts to support the hydrogen economy in Germany are bearing fruit," says Udo Philipp, State Secretary at the Federal Ministry for Economic Affairs and Climate Action.
"A flagship project for the integration of hydrogen into a chemical production site has become a reality at the Ludwigshafen site.
“It is the largest project of its kind in Germany to date, making it an important pioneer as we strive to achieve our climate targets."
The environmental impact
The electrolyser has the potential to reduce greenhouse gas emissions at BASF's main plant by up to 72,000 tonnes annually by substituting traditionally produced hydrogen with emission-free alternatives.
“All this in a chemical industry that is currently the third-largest source of industrial CO₂ emissions worldwide,” says Anne-Laure de Chammard, Member of the Executive Board at Siemens Energy.
“That is why projects like this mark a real turning point.”
It is a turning point that sees BASF transition from the natural gas-based steam reforming methods previously used at its site.
The hydrogen produced will be fed into the site's hydrogen network for distribution to various production facilities where it serves as a raw material for manufacturing ammonia, methanol and vitamins.
"The commissioning of the electrolyser makes it possible for us to support our customers in achieving their climate targets by offering them products with a lower carbon footprint," explains Katja Scharpwinkel, member of BASF SE's Board of Executive Directors and Site Director Ludwigshafen.
The regional impact
Beyond its on-site applications, BASF plans to supply hydrogen for mobility solutions in the Rhine-Neckar Metropolitan Region, supporting broader development of a hydrogen economy.
This expansion aligns with Rhineland-Palatinate's climate protection goals and industrial transformation strategy.
"The commissioning of the electrolyser at BASF for the production of green hydrogen is a milestone for the ramp-up of the hydrogen economy in Rhineland-Palatinate, Germany and Europe and an important commitment of BASF to its technology and production site in Ludwigshafen," says Alexander Schweitzer, Minister-President of Rhineland-Palatinate.
The project, named Hy4CHem, demonstrates a practical approach to industrial decarbonisation that balances climate objectives with economic competitiveness.
As one of the first large-scale implementations of green hydrogen technology in chemical manufacturing, it provides valuable operational experience that could inform similar transitions at other industrial facilities.
“This is another important step towards CO₂-free hydrogen production and allows us to fulfil our promise of enabling the green transformation for our customers,” says Stephan.
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