German chemicals maker BASF <BASFn.DE> is teaming up with partners to study the feasibility of a petrochemical complex in India worth up to $4 billion, which would be the world's first to be fully powered by renewable energy.
BASF said on Thursday it had signed a memorandum of understanding with Abu Dhabi National Oil Company (ADNOC), Adani Group and Borealis AG to further evaluate a collaboration to build the chemical site in Mundra, in India's Gujarat state.
BASF would foot roughly half of the overall investment bill, a spokesman added.
Under the plan, the partners would build a plant to produce propylene from propane gas to be supplied by ADNOC.
Some of the propylene would go into a complex to produce polypropylene plastic, to be owned by ADNOC and Borealis, with the rest of the propylene to be used by a joint venture between BASF and Adani to make intermediate chemical products.