Chemical giant BASF has formed its own renewable energy business to lead its efforts to meet what could be a quadrupling of demand for green power by its European operations.

The German group’s BASF Renewable Energy unit will be involved in project development in its own right, as well as signing major power purchase agreements (PPAs) with third parties, said a statement.

BASF – one of the world’s largest chemical firms – said demand by its European operations is expected to increase from a current nine terawatt hours annually “to the point where at least three to four times as much electricity from renewable sources will be needed” to reach its 2050 net zero target.