When a chemical manufacturing giant decides to generate its own green electricity rather than simply buying it off the grid, something fundamental is shifting in India’s industrial landscape. BASF India Limited has joined forces with Clean Max Enviro Energy Solutions to develop a 12.21 megawatt hybrid wind-solar captive project in Gujarat’s Jamnagar district, marking a decisive move beyond conventional power procurement. Expected to become operational in 2026, this facility will marry 6.6 MVA of wind capacity with 5.61 MWp of solar generation, producing approximately 28,860 megawatt-hours of clean electricity annually. The power will flow directly to BASF’s manufacturing facilities at Dahej and Panoli, demonstrating how India’s industrial heavyweights are taking energy transition into their own hands. This isn’t corporate greenwashing—it’s a ₹65.93 million bet that owning renewable infrastructure makes better business sense than relying on fossil fuels.
The Captive Model: Ownership Meets Sustainability
The Jamnagar project represents more than just another renewable energy installation; it embodies a sophisticated ownership structure designed to maximise both environmental and financial returns. BASF has secured a 26% equity stake in Clean Max Amalfi, a special purpose vehicle created by CleanMax specifically for this group captive power plant. This investment, worth approximately ₹65.93 million (roughly $744,000), positions BASF to benefit from the regulatory advantages available to captive users under Indian law. Unlike traditional power purchase agreements where companies simply buy electricity, the captive model grants partial ownership, offering greater control over energy costs and supply reliability.
The hybrid nature of the project addresses one of renewable energy’s persistent challenges: intermittency. By combining wind and solar generation at the same location, the facility can produce power more consistently throughout the day and across seasons. When sunshine diminishes, wind often picks up, and vice versa. This complementary generation pattern ensures BASF‘s Gujarat manufacturing units receive a more stable renewable power supply than either technology could provide alone. The electricity generated will be consumed exclusively by BASF‘s operations, directly offsetting conventional power usage and reducing the carbon footprint of chemical production processes.
Managing Director of Clean Max, Kuldeep Jain, emphasised that this joint venture aims to provide cost-effective green power whilst accelerating manufacturers’ efforts to meet net-zero goals. The collaboration exemplifies BASF‘s “make-and-buy” strategy for renewable energy procurement, balancing owned generation capacity with purchased renewable electricity. This approach offers flexibility, allowing the company to scale its clean energy use progressively whilst managing capital expenditure efficiently. For CleanMax, partnering with a global industrial player like BASF validates their captive project model and strengthens their position in India’s rapidly growing corporate renewable energy market.
BASF‘s Broader Green Transformation Takes Shape
The Jamnagar hybrid project fits within BASF India‘s comprehensive sustainability framework targeting net-zero greenhouse gas emissions by 2050 across Scope 1, 2, and 3 emissions. This ambitious goal encompasses not just the company’s direct emissions and purchased electricity, but also its entire value chain—from raw material suppliers to end-product users. Achieving such sweeping decarbonisation requires a phased approach that BASF is methodically implementing across its Indian operations.
At the company’s Mangalore site, renewable energy has already made significant inroads, with over 58% of power now sourced from solar installations. During the 2024-25 financial year, BASF secured a 25-year power purchase agreement with Clean Renewable Energy KK 2C, guaranteeing 2.7 megawatts of renewable power for decades. Meanwhile, the Dahej manufacturing site has completed the second phase of rooftop solar panel installation, with a third phase under preparation. Once fully operational, these rooftop arrays will deliver 900 kilowatts of installed solar capacity, directly powering on-site operations whilst reducing grid dependence.
This multi-pronged strategy reflects BASF‘s recognition that sustainable manufacturing requires diverse renewable energy sources and procurement methods. Rooftop solar addresses immediate on-site needs, long-term power purchase agreements provide price certainty, and captive projects like Jamnagar offer ownership benefits. Together, these initiatives demonstrate how large industrial consumers can construct robust renewable energy portfolios tailored to their specific operational requirements.
Industrial Decarbonisation Gains Momentum Across Sectors
BASF‘s partnership with CleanMax represents a broader trend reshaping India’s industrial energy landscape. Corporations increasingly recognise that renewable energy procurement isn’t merely about regulatory compliance or public relations—it’s becoming a competitive necessity. As carbon pricing mechanisms expand globally and sustainability requirements tighten in supply chains, companies lacking clean energy strategies risk losing market access and facing higher operational costs.
CleanMax itself has emerged as a key enabler of this industrial transition. In July 2025, the company partnered with Toyota Tsusho India to develop 300 megawatts of renewable energy projects specifically targeting Japanese companies operating in India. This substantial commitment underscores growing international corporate interest in India’s green power potential. Foreign manufacturers establishing or expanding Indian operations now routinely factor renewable energy availability into location decisions, creating competitive pressure on states and energy developers to facilitate corporate clean energy access.
Such collaborations deliver multiple benefits beyond emissions reduction. Captive renewable projects can lower long-term electricity costs by insulating companies from fossil fuel price volatility. They enhance energy security by reducing grid dependence. They also improve corporate sustainability credentials, increasingly important for accessing international capital markets and satisfying environmentally conscious customers. For India, every corporate megawatt shifted to renewables eases pressure on the conventional grid whilst advancing national climate commitments.
BASF India‘s 12.21 megawatt hybrid wind-solar venture with CleanMax exemplifies how industrial decarbonisation is evolving from aspiration to concrete infrastructure. The project’s expected 28,860 megawatt-hours of annual clean electricity will tangibly reduce manufacturing emissions whilst demonstrating the viability of captive renewable models. As more corporations follow BASF‘s lead, investing in owned generation capacity rather than simply purchasing power, India‘s industrial landscape will fundamentally transform. The phased, strategic approach BASF employs—combining owned assets, long-term contracts, and on-site generation—offers a replicable blueprint for manufacturers seeking sustainable operations. With industrial energy demand growing rapidly, such initiatives prove that economic growth and environmental responsibility can advance together, powered by Gujarat‘s abundant sun and wind.