BASF SE and Indian conglomerate the Adani Group have signed a memorandum of understanding (MoU) to study a €2bn investment in the acrylic value chain in India.
The proposed project in the port of Mundra, Gujarat, would constitute BASF's largest investment to date in India, the two companies said in a joint statement 17 Jan.
The potential investment includes the design, construction and operation of various production facilities, including propane dehydrogenation (PDH), oxo-C4 complex (butanols and 2-ethylhexanol), acrylic acid (GAA), butyl acrylate (BA) and other downstream products.
A feasibility study will be completed by the end of 2019 for the project, which, if it goes through, will be BASF’s first CO2-neutral site.
The companies have developed an overall concept that includes new technologies and enables the site to be completely powered with renewable energy. As part this, BASF is planning to participate with a minority stake in a separate joint wind and solar park in India.
The proposed plant’s product offering will be directed primarily at the Indian market to serve industries such as construction, automotive and coatings.
"India continues to import large volumes of petrochemicals in the face of rapid growth in the Indian middle class, resulting in a significant outflow of valuable foreign exchange,” said Gautam Adani, chairman of the Adani Group.
The project is aligned with the state-sponsored ‘made in India’ initiative and will promote the local production of chemicals along the C3 value chain, which the country currently imports.
"BASF's investment… underscores our strong and long-term commitment to our Indian customers,” said Martin Brudermüller, chairman of the executive board of BASF SE.