BASF and ENGIE signed a long term Biomethane Purchase Agreement in Europe

Press release

4 July 2024

BASF and ENGIE signed a long term

Biomethane Purchase Agreement in Europe

 

•      BASF and ENGIE signed a 7-year Biomethane Purchase Agreement (BPA) 

•      Biomethane is used as a substitute for fossil raw materials in chemical production at BASF’s Ludwigshafen and Antwerp sites

•      Further expansion of product portfolio with a reduced Product Carbon Footprint (PCF) for customers 

BASF and ENGIE signed a 7-year Biomethane Purchase Agreement (BPA). Under the BPA, ENGIE will supply BASF with 2.7 to 2.9 terawatt hours of biomethane throughout the term of the agreement.

 

BASF mainly uses certified biomethane at its Ludwigshafen/Germany and Antwerp/Belgium sites as a sustainable alternative to fossil raw materials in its manufacturing process. The approach supports the company’s sustainability transformation by reducing its carbon footprint. The biomethane amount is allocated to the end product using a third-party, globally recognized certification scheme, known as the Biomass Balance approach.

With the purchase agreement and usage of biomethane, BASF further expands its product portfolio by offering products with lower or zero Product Carbon Footprints (PCF) to its customers across industries like automotive, detergents, textiles and woodworking. 

“BASF and ENGIE have been working together for many years. We are increasingly using alternative feedstocks such as biomethane at the beginning of our value chain, as part of our transition towards a circular economy. This agreement will ensure a long-term supply of biomethane at competitive prices. We are happy to have such a

reliable partner in ENGIE”, said Matthias Dohrn, Head of Global Procurement at BASF.

Edouard Neviaski, CEO of ENGIE’s Business Entity ‘Global Energy Management & Sales’ stated: “ENGIE and BASF is a story of green chemistry. After entering into the longest-term Power Purchase Agreement ever signed in the European chemical industry in 2021, we are happy to accompany our partner again to take strides on the biomethane side. With a biomethane portfolio steadily growing, this new deal sets us on the right path to achieve our ambition to sell 30 terawatt hours of biomethane per year by 2030. With a strong growth potential, and Europe’s ambition to produce 35 billion m³by 2030, we believe that BPAs will experience significant growth.”

Biomethane is a renewable gas produced through the fermentation of organic waste from households, agriculture, or industry. It significantly reduces greenhouse gas emissions.

 

About ENGIE

ENGIE is a global reference in low-carbon energy and services. With its 97,000 employees, clients, partners and stakeholders, the Group strives every day to accelerate the transition towards a carbon-neutral economy, through reduced energy consumption and more environmentally friendly solutions. Inspired by its purpose statement, ENGIE reconciles economic performance with a positive impact on people and the planet, building on its key businesses (gas, renewable energy, services) to offer competitive solutions to its clients. Turnover in 2023: €82.6 billion. The Group is listed on the Paris and Brussels stock exchanges (ENGI) and is represented in the main financial indices (CAC 40, Euronext 100, FTSE Euro 100, MSCI Europe) and non-financial indices (DJSI World, Euronext Vigeo Eiris - Europe 120 / France 20, MSCI EMU ESG screened, MSCI EUROPE ESG Universal Select, Stoxx Europe 600 ESG-X).

About BASF

At BASF, we create chemistry for a sustainable future. We combine economic success with environmental protection and social responsibility. Around 112,000 employees in the BASF Group contribute to the success of our customers in nearly all sectors and almost every country in the world. Our portfolio comprises six segments: Chemicals, Materials, Industrial Solutions, Surface Technologies, Nutrition & Care, and

Agricultural Solutions. BASF generated sales of €68.9 billion in 2023. BASF shares are traded on the stock exchange in Frankfurt (BAS) and as American Depositary Receipts (BASFY) in the United States.  Further information at www.basf.com

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