BASF’s Green Hydrogen Playbook 2025: From Feedstock Decarbonization to Market Leadership

Industry Adoption: How BASF is Operationalizing Green Hydrogen in Chemicals

Between 2021 and 2024, BASF laid the strategic groundwork for its green hydrogen ambitions, focusing on technology development, securing funding, and forging foundational partnerships. This period was characterized by planning and validation. Key moves included forming strategic alliances with Siemens Energy (February 2021) and RWE (May 2021) to explore low-carbon hydrogen production technologies and the large-scale wind power needed to fuel them. The critical inflection point came in November 2023, when BASF secured up to €134 million in public funding for its “Hy4Chem-EI” project, validating the industrial and political backing for a 54 MW proton exchange membrane (PEM) electrolyzer at its Ludwigshafen site. The company also began positioning itself as a technology provider, with Shell qualifying its Puristar® catalysts and Sorbead® adsorption technology for green hydrogen purification in June 2022. This phase was about building the necessary technical and financial capacity, establishing a blueprint for decarbonizing its most energy-intensive processes.

The period from January 2025 to the present marks a decisive shift from planning to execution and commercialization, turning theoretical capacity into tangible output. The most significant event was the commissioning of the 54 MW PEM electrolyzer in Ludwigshafen in March 2025, a landmark project with Siemens Energy capable of producing approximately 8,000 tons of green hydrogen annually. This immediately unlocked new commercial applications. In May 2025, BASF launched the world’s first renewable ammonia produced in Central Europe, directly using the green hydrogen from the new electrolyzer. This was not a pilot product; by December 2025, the company had already secured a commercial offtake agreement with fertilizer producer OCI for the first volumes. This swift pivot from production to sale signals the beginning of a viable market for green chemicals. Furthermore, BASF is expanding its ecosystem globally, partnering with Plug Power in the U.S. to deploy its purification technology in their hydrogen plants and with Mingyang in China to develop Power-to-X solutions for green hydrogen, ammonia, and methanol. The opening of a new green hydrogen and fuel cell component production site in Budenheim, Germany, in November 2025, further demonstrates a strategy that has matured from a single-project focus to building a scalable, global supply chain for the hydrogen economy.

Table: BASF’s Strategic Investments in Green Hydrogen Capabilities

Table: BASF’s Hydrogen Partnership Ecosystem Evolution

Geography: BASF’s Hydrogen Strategy Goes Global

From 2021 to 2024, BASF’s green hydrogen activities were overwhelmingly concentrated in Germany. The Ludwigshafen production site served as the incubator for its entire strategy, hosting the foundational partnerships with Siemens Energy and RWE and being the designated location for the flagship Hy4Chem-EI electrolyzer project, which secured critical federal and state funding. This deliberate, focused approach allowed the company to concentrate resources, manage technical risks, and build a center of excellence before expanding.

The landscape changed dramatically in 2025 as BASF began to leverage its German-based success for global expansion. While Germany remains the operational core—evidenced by the commissioning of the Ludwigshafen electrolyzer and the opening of the Budenheim component facility—two new strategic regions have emerged. China became a primary target with the April 2025 Memorandum of Understanding with Mingyang to pursue Power-to-X solutions, a clear signal of intent to replicate its green hydrogen and derivatives model in the world’s largest chemical market. Simultaneously, the United States became a key commercialization market. The May 2025 partnership with Plug Power positions BASF not as a producer of hydrogen in the U.S., but as a crucial technology provider to one of the market’s biggest players. This geographic diversification from a single European hub to a multi-pronged global strategy targeting both production (China) and technology sales (U.S.) minimizes regional risk and opens significantly larger addressable markets.

Technology Maturity: BASF’s Journey from Pilot to Product

In the 2021–2024 period, BASF’s hydrogen technology was firmly in the development, funding, and validation stages. The partnership with Siemens Energy was established to “accelerate the commercial implementation” of new technologies, and the RWE collaboration was a “plan” for a large-scale wind-to-hydrogen project. The most concrete step forward was securing the €134 million in public funding for the Hy4Chem-EI project in late 2023, which officially moved the 54 MW electrolyzer from a concept to a funded, developable asset. Technology validation was also key, as seen when Shell qualified BASF’s proprietary purification catalysts in 2022. The entire period was defined by de-risking the technology and building the business case, with no large-scale commercial output.

Starting in 2025, the technology rapidly progressed to the commercial and scaling stages. The commissioning of the 54 MW PEM electrolyzer in March 2025 was the definitive validation point, proving the technology’s viability at an industrial scale. This was immediately followed by a move to commercial productization with the launch of renewable ammonia in May 2025 and the subsequent sales agreement with OCI. This demonstrates a complete value chain, from electron to molecule to market. The strategy is now about scaling. The new Budenheim facility is producing components for the broader hydrogen economy, and partnerships with Plug Power and Mingyang are designed to deploy BASF’s expertise and technology into external markets. While green hydrogen via electrolysis is now commercial, BASF continues to explore earlier-stage technologies, such as its 2025 partnership with ExxonMobil on methane pyrolysis, indicating a mature, portfolio-based approach to hydrogen R&D that runs in parallel with its commercial scaling efforts.

Table: SWOT Analysis of BASF’s Green Hydrogen Strategy

Forward-Looking Insights and Summary

BASF’s activities in 2025 signal a clear and aggressive pivot from strategic planning to commercial execution in the green hydrogen space. The successful commissioning of the Ludwigshafen electrolyzer and the immediate launch and sale of renewable ammonia are not a culmination but rather the start of a new operational phase. For energy executives and investors, the year ahead will be defined by how effectively BASF scales this validated model.

Market actors should pay close attention to three key signals. First is the expansion of the green product portfolio. Following renewable ammonia, we should expect announcements of other chemicals from the Ludwigshafen site being produced with a certified low-carbon footprint, further leveraging the 8,000-ton annual green hydrogen capacity. Second is the pace of geographic replication. The partnership with Mingyang in China is the most critical to watch; any concrete project announcements for green hydrogen or ammonia plants there will validate BASF’s ability to export its integrated model to high-growth markets. Third is the commercialization of enabling technologies. The deal with Plug Power is a powerful proof point. Expect to see BASF more actively market its proprietary catalysts, membranes, and purification solutions to other players, creating a new, high-margin revenue stream.

While green hydrogen via electrolysis is gaining commercial traction, the parallel pursuit of methane pyrolysis with ExxonMobil is a significant wildcard. This indicates BASF is hedging its bets, recognizing that in a future constrained by renewable electricity supply, a less power-intensive method like turquoise hydrogen could be a winner. Ultimately, BASF has successfully demonstrated it can make green hydrogen and its derivatives at an industrial scale. The critical question for 2026 and beyond is whether it can do so profitably and globally, turning its commanding technical lead into durable market leadership.

Frequently Asked Questions

What was the most important milestone for BASF’s green hydrogen strategy in 2025?
The most significant milestone in 2025 was the commissioning of the 54 MW PEM electrolyzer at the Ludwigshafen site in March. This event marked the shift from planning to execution, enabling the industrial-scale production of approximately 8,000 tons of green hydrogen annually and leading directly to the launch of commercial products like renewable ammonia.

Is BASF only producing green hydrogen for its own use?
No. While BASF is using green hydrogen to decarbonize its own chemical production, such as making renewable ammonia, it is also expanding to become a technology supplier for the broader hydrogen economy. Key examples include supplying purification catalysts to Plug Power in the U.S. and opening a facility in Budenheim, Germany, to manufacture components for fuel cells and hydrogen systems.

How is BASF expanding its hydrogen strategy geographically?
Initially focused almost entirely on Germany, BASF began a significant global expansion in 2025. The company entered the Chinese market through a partnership with Mingyang to develop Power-to-X solutions (green hydrogen, ammonia, methanol) and established a presence in the United States by becoming a key technology provider to Plug Power. This diversifies its strategy from a single European hub to include major markets in Asia and North America.

What is the ‘Hy4Chem-EI’ project?
Hy4Chem-EI is the official name for BASF’s flagship green hydrogen project at its Ludwigshafen site. It involves the construction and operation of a 54 MW Proton Exchange Membrane (PEM) electrolyzer. The project’s development was significantly accelerated by up to €134 million in public funding from German federal and state authorities, approved in November 2023.

Is green hydrogen the only low-carbon hydrogen technology BASF is interested in?
No. While green hydrogen from electrolysis is its primary commercial focus, BASF is also exploring other low-emission hydrogen technologies. In late 2025, it announced a partnership with ExxonMobil to advance methane pyrolysis, a process that produces ‘turquoise’ hydrogen. This shows BASF is pursuing a diversified R&D portfolio and hedging against potential constraints of renewable electricity supply.