BASF begins constructing one of the world’s largest industrial heat pumps at Ludwigshafen, enabling CO2-free steam, deep decarbonization, and innovation.
BASF, together with its project partner GIG Karasek, has marked a significant step toward industrial decarbonization with the groundbreaking ceremony for one of the world’s largest industrial heat pumps at its Ludwigshafen site. The event, which symbolizes the beginning of the construction phase, was attended by Dr. Peter Menck, Head of the Department for Funding Programs for Decarbonization of Industry at the German Federal Ministry for Economic Affairs and Energy. This state-of-the-art heat pump project is set to play a crucial role in transforming BASF’s operations by electrifying steam generation using renewable electricity.
The heat pump under construction is designed to deliver a thermal output of nearly 50 megawatts. It will harness electricity from renewable sources to produce CO2-free steam, with the primary application being the production of formic acid. Once operational, the system is expected to cut annual greenhouse gas emissions at the Ludwigshafen site by up to 98 percent, which corresponds to around 100,000 metric tons of CO2 saved each year. A unique feature of this project is its ability to recycle waste heat generated by cooling processes in one of the two steam crackers at the site, thereby maximizing energy efficiency.
Highlighting the importance of this project, Helmut Winterling, President of BASF’s European Verbund Sites, emphasized that electrification of critical production processes is essential for the chemical industry’s pathway to climate neutrality. He noted that steam generated by the new heat pump will partly replace conventional fossil-fuel-derived steam from the company’s gas and steam power plants. Winterling also stressed BASF’s commitment to reducing the carbon footprint of its products through methods such as biomass balancing and targeted investments in innovative technologies. With the financial support of the German Federal Ministry for Economic Affairs and Energy, BASF is making strategic investments at its Ludwigshafen hub to ensure a sustainable and competitive supply of green products for the European market.
Gitta Connemann, Parliamentary State Secretary at the Federal Ministry, praised BASF’s forward-looking approach. She described the project as a powerful symbol of Germany’s industrial strength and its ability to align economic progress with climate action. Connemann added that projects like these show how innovation and entrepreneurial courage can drive the transformation toward a low-carbon economy. The government’s support for this project reflects confidence that investments in future-focused technologies not only combat climate change but also secure long-term jobs and economic value.
The industrial-scale heat pump, developed with GIG Karasek, will occupy approximately 2,000 square meters next to the steam cracker, connected through an extensive network of pipe bridges. It will be capable of producing 60 metric tons of steam per hour, equating to as much as 500,000 metric tons annually. Notably, the system sets new benchmarks in both temperature lift and output capacity. Commissioning of the facility is planned for mid-2027.
In October of the previous year, BASF secured funding approval for the initiative under Germany’s Carbon Contracts for Difference program. The federal government has pledged up to €310 million in financial support, underlining the project’s status as a flagship example of industrial decarbonization.
