BASF and Germany’s BSE Engineering will work together on converting carbon dioxide and excess electricity into methanol. BSE is developing a process to generate hydrogen through electrolysis of water. In a second step, BASF catalysts will convert CO2 and hydrogen into methanol. Facilities will be located next to major sources of CO2 emissions, such as power plants. BSE says it has been developing its technology for the past four years and that construction of the first plants will start soon.