Leuna works
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The proximity of the site to lignite (brown coal) mines was also advantageous for the production of syngas (hydrogen and carbon monoxide) and tests of coal conversion into liquid fuels on an industrial scale. The Leuna plant for the commercial hydrogenation of lignite started production on April 1, 1927.[4]

In late 1925, BASF became a branch of IG Farben, operating as Ammoniakwerk Merseburg GmbH " Leuna Werke. The site was rapidly expanded in the 1920s and 1930s, with plants producing methanol, synthetic petrol derived from the hydrogenation of lignite, amines and detergents.[5] The synthesis of petrol, although expensive compared to world market prices, was pursued in order to reduce Germany's dependency on imported oil products. As Germany possesses very few petroleum deposits of its own, seven hydrogenation plants were constructed and were producing synthetic petrol by 1939, Leuna being the largest.