Release date: 12 December 2022
Promoter – Financial Intermediary
BASF SELocation
Description
The project concerns the promoter's research, development and innovation (RDI) investments over a 2-year period (2022-2023). Such investments focus on five segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care, as well as central Corporate Research.
Additionality and Impact
The proposed operation supports the Bank's Research, Innovation and Digital objective.
It aims at financing investments in RDI activities to develop new technologies, products, and processes for the chemical industry. The project is expected to improve the resource efficiency, performance, and the overall sustainability of chemical products through the development of solutions and services that improve energy, emission and water efficiency, safety, and circular business models; as such, a part of the project is expected to contribute to the Bank's Climate Action & Environmental Sustainability objectives.
The project, which has a substantial portion of early-stage research, will generate positive knowledge externalities through cooperation with suppliers, customers, scientific institutes, and universities. Moreover, the project will also help maintaining and creating highly skilled jobs in the promoter's research facilities mainly in Germany.
The promoter's investments address the market failures and gaps associated with (i) imperfect competition and incomplete markets for innovative sustainable technologies, and those addressed by (ii) projects with positive knowledge, environmental and safety externalities generation.
The Bank's contribution to the project is underpinned by a combination of advantageous terms, a meaningful loan amount as well as a signalling effect in terms of confidence in the business model, thereby facilitating the project's financing and full implementation.
Objectives
The EIB will finance the promoter's RDI programme to accelerate the deployment of higher-value added chemicals as well as the development of new products and processes with a positive impacts on climate action and environmental sustainability.
Sector(s)
- Industry - Manufacturing
Proposed EIB finance (Approximate amount)
EUR 700 million
Total cost (Approximate amount)
EUR 1532 million
Environmental aspects
The concerned RDI activities will be carried out in existing facilities without changing their previously authorised scope. Since such activities are not specifically mentioned under the Environmental Impact Assessment (EIA) Directive, the project will not require an EIA under the directive 2014/52/EU amending directive 2011/92/EU.
Procurement
The promoter is a private company not operating in the utilities sector and not having a status of a contracting entity. EU Directives on procurement are therefore not applicable.
Status
Signed - 1/12/2022
Disclaimer
Before financing approval by the Board of Directors, and before loan signature, projects are under appraisal and negotiation. The information and data provided on this page are therefore indicative.
They are provided for transparency purposes only and cannot be considered to represent official EIB policy (see also the Explanatory notes).