BASF Partners with IPP to Market Ammonia, Methanol, and Melamine Plants for Relocation

BASF Partners with IPP to Market Ammonia, Methanol, and Melamine Plants for Relocation

(IN BRIEF) BASF, in collaboration with International Process Plants (IPP), has agreed to market ammonia, methanol, and melamine plants situated at BASF’s Verbund site in Ludwigshafen, Germany. These assets, made available as part of BASF’s strategic adjustments to maintain competitiveness in the European market, will be offered by IPP for relocation and sale to qualified buyers seeking to expand their production capacity with efficient, world-class assets. With undisclosed financial terms, the agreement encompasses the integrated production units with capacities of 380,000 metric tons/year for ammonia, 165,000 metric tons/year for methanol, and 51,000 metric tons/year for melamine. IPP aims to find suitable homes for these assets, either in locations with ample gas supply or as part of green ammonia or methanol projects, ensuring continued productivity and sustainability.

(PRESS RELEASE) LUDWIGSHAFEN, 7-May-2024 — /EuropaWire/ — BASF and International Process Plants (IPP), a global leader in the acquisition and sale of process plants and equipment, have entered an agreement to market ammonia, methanol and melamine plants located at BASF’s Verbund site in Ludwigshafen, Germany. The plants have become available as BASF implements structural measures at its Ludwigshafen site to ensure competitiveness in a changing European market environment as announced in February 2023. BASF will continue to produce ammonia and methanol in other assets at Ludwigshafen site. The two companies have agreed not to disclose financial details of the deal.

The agreement includes the integrated production assets for ammonia (380,000 metric tons/year), methanol (165,000 metric tons/year) and melamine (51,000 metric tons/year). IPP is offering these world-class production units for relocation and sale to qualified buyers with projects for such assets who are looking for opportunities for lower capex and shorter project execution timelines.

“We are excited to add these world-class ammonia, methanol, and melamine plants to our portfolio of excellent plants for relocation,” said Ronald Gale, President of International Process Plants. “These facilities represent a significant opportunity for companies seeking to expand their production capacity with existing assets that operate at a high level of energy and raw material efficiency. IPP is committed to finding a new home for these assets in a location with sufficient and economic gas supply or as part of a green ammonia or methanol project where they can continue to operate efficiently and productively.”

The 380,000 metric tons/year ammonia plant consumes 0.97 Tm3 of natural gas as feedstock and fuel per ton of ammonia. The 51,000 metric tons/year melamine plant consumes as little as 2.6 tons of urea crystal per ton of melamine and has a low energy requirement of 0.27 Tm3 of natural gas per ton of melamine. The methanol unit is a synthesis loop that can be used in a green methanol project with available green feedstocks.

“BASF is partnering with IPP on the divestment of the idled ammonia, methanol, and melamine plants to ensure that these well-maintained assets are sustained for chemical production. The units were in operation through 2023 and only shut down in the context of the structural adaptation of our production setup at the Ludwigshafen site. The sale represents a more sustainable and economic approach to the deployment of these production units, and with a net benefit to the global process industry,” said Ruediger von Watzdorf, Senior Vice President Technology, BASF Monomers division.

About International Process Plants (IPP)

IPP creates a sustainable lifecycle for manufacturing assets. IPP is a global leader in the purchase and supply of complete plant sites, process units/systems, and used, new, and rebuilt major pieces of process equipment. The company has offices in 14 countries, helping manufacturers save time and money with immediately available assets to grow their capabilities. With a consultative approach, the IPP team focuses on a clear understanding of client needs to deliver solutions quickly and at significantly less cost. Over 160,000 customers worldwide look to IPP to meet their needs. IPP’s holdings include 17 complete plant sites, 110 plants for relocation and 15,000 equipment process systems and major pieces of equipment. For more information, visit ippe.com.

About BASF

At BASF, we create chemistry for a sustainable future. We combine economic success with environmental protection and social responsibility. Around 112,000 employees in the BASF Group contribute to the success of our customers in nearly all sectors and almost every country in the world. Our portfolio comprises six segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care and Agricultural Solutions. BASF generated sales of €68.9 billion in 2023. BASF shares are traded on the stock exchange in Frankfurt (BAS) and as American Depositary Receipts (BASFY) in the United States. Further information at www.basf.com.

Media Contact:

BASF:
Katharina Meischen
Monomers
+32 478-90-6259
katharina.meischen@basf.com

IPP:
Kevin Whitmer
Public Relations KevinW@ippe.com
+1 973 951 3916

SOURCE: BASF