BASF and ENGIE sign landmark 7-year biomethane purchase agreement

In a significant step toward sustainable chemical production, BASF and ENGIE have entered into a 7-year Biomethane Purchase Agreement (BPA). Under this agreement, ENGIE will supply between 2.7 to 3.0 terawatt hours of biomethane to BASF over the term, marking a pivotal move in the use of renewable resources in the chemical industry.

The biomethane sourced through this agreement will be utilized at BASF’s major production sites in Ludwigshafen, Germany, and Antwerp, Belgium. This initiative is part of BASF’s broader strategy to replace fossil raw materials with sustainable alternatives, significantly reducing the company’s carbon footprint. The sustainable transformation is underscored by the use of certified biomethane, which aligns with the globally recognized Biomass Balance approach. This method ensures that the biomethane used is accurately allocated to the end products, enhancing transparency and sustainability in production.

BASF aims to leverage the use of biomethane to expand its product portfolio, offering solutions with lower or zero Product Carbon Footprints (PCF) to a wide range of industries including automotive, packaging, and detergents. This strategic move not only responds to increasing consumer demand for sustainable products but also reinforces BASF’s commitment to environmental stewardship.

Matthias Dohrn, Head of Global Procurement at BASF, expressed satisfaction with the partnership, emphasizing the strategic use of alternative feedstocks like biomethane in BASF’s transition towards a circular economy. Edouard Neviaski, CEO of ENGIE’s Global Energy Management & Sales, highlighted the growing importance of biomethane in achieving Europe’s ambitious environmental targets. ENGIE aims to sell 30 terawatt hours of biomethane per year by 2030, reflecting both the market’s potential and the strategic importance of such agreements in fostering sustainable energy solutions.

The collaboration between BASF and ENGIE on biomethane utilization is a testament to the evolving dynamics within the chemical industry towards greener alternatives. This partnership not only meets current regulatory and market demands but sets a benchmark for future developments in the industry’s shift to sustainable energy sources.