Abstract
BASF’s gargantuan site in Ludwigshafen symbolizes the German chemical industry’s stature. The site, which started commercial operations in 1873, is the world’s largest integrated chemical complex. It spreads across 10 km 2 and houses 39,000 employees and 200 production plants. It consumes as much natural gas as the country of Switzerland. Germany is by far the largest chemical producer in Europe. In 2021, the country’s chemical industry generated sales of $242 billion, or 27% of the sector’s total revenue in the European Union. But the natural gas crisis that has bruised European competitiveness in chemical manufacturing hit Germany disproportionately hard. With a sharp decline in production, disrupted supply chains, and enormous energy costs, firms are considering the possibility that Germany’s days as a chemical industry stronghold are over. “Natural gas defines Germany’s energy system. We’ve done nothing for years but switch our entire energy supply from oil and coal to
Published Version
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