BASF and ENGIE Ink Long-Term Biomethane Purchase Agreement in Europe

BASF and ENGIE have established a 7-year Biomethane Purchase Agreement (BPA), ensuring a steady supply of 2.7 to 3.0 terawatt hours of biomethane to BASF. This partnership aims to enhance BASF's sustainable energy sourcing strategy, supporting its commitment to reducing carbon emissions and promoting renewable energy solutions.

BASF will utilize certified biomethane at its Ludwigshafen, Germany, and Antwerp, Belgium, sites as a sustainable alternative to fossil raw materials in its manufacturing processes. This approach aids in BASF's sustainable transformation by significantly reducing its carbon footprint. The allocated biomethane amount is certified through a globally recognized third-party scheme, the Biomass Balance approach.

By integrating biomethane into its operations, BASF enhances its product portfolio, offering customers in industries such as automotive, packaging, and detergents products with reduced or zero Product Carbon Footprints (PCF). This agreement underscores BASF's commitment to sustainability and innovation in reducing environmental impact.

Matthias Dohrn, Head of Global Procurement at BASF, highlighted the longstanding partnership with ENGIE and emphasized their collaborative efforts towards sustainability. He noted BASF's increasing use of alternative feedstocks like biomethane as part of their transition towards a circular economy. This agreement ensures a long-term supply of competitively priced biomethane, which is crucial for BASF's value chain. Dohrn expressed satisfaction with ENGIE as a dependable partner, underscoring the importance of reliable collaborations in achieving their sustainability goals.

Edouard Neviaski, CEO of ENGIE’s Business Entity ‘Global Energy Management & Sales’, emphasized the longstanding and innovative partnership between ENGIE and BASF, referring to it as a "story of green chemistry." He highlighted their notable achievement in 2021, where they entered into the longest-term Power Purchase Agreement (PPA) ever signed in the European chemical industry. Neviaski expressed enthusiasm about extending their collaboration into the biomethane sector, which is critical for advancing sustainability goals. He pointed out that ENGIE's biomethane portfolio is steadily growing, and this new deal is a significant step towards their ambition of selling 30 terawatt hours of biomethane annually by 2030. Neviaski underscored the strong growth potential of the biomethane market and Europe's goal to produce 35 billion cubic meters by 2030. He confidently predicted that Biomethane Purchase Agreements (BPAs) will experience substantial growth, driven by increasing demand for renewable energy solutions and a commitment to reducing carbon footprints.

The Biomethane Purchase Agreement between BASF and ENGIE represents a strategic move towards sustainability in the chemical industry. By integrating certified biomethane into its production processes, BASF not only reduces its carbon footprint but also expands its offering of environmentally friendly products to diverse sectors. This initiative aligns with BASF's commitment to sustainable transformation, leveraging innovative approaches like the Biomass Balance scheme to ensure transparency and credibility in emissions reduction. As global industries increasingly prioritize sustainability, BASF's adoption of biomethane underscores its leadership in advancing cleaner production methods and meeting growing consumer demand for sustainable solutions.