BASF and ENGIE have signed a 7-year Biomethane Purchase Agreement (BPA), under which ENGIE will supply BASF with 2.7 to 3.0 terawatt hours of biomethane throughout the agreement’s duration.
BASF will use certified biomethane at its Ludwigshafen, Germany, and Antwerp, Belgium sites as a sustainable alternative to fossil raw materials in its manufacturing processes. This approach supports the company’s sustainability goals by reducing its carbon footprint. The biomethane is allocated to the end product through a third-party, globally recognized certification scheme known as the Biomass Balance approach.
This agreement enables BASF to expand its product portfolio, offering customers in industries like automotive, packaging, and detergents products with lower or zero Product Carbon Footprints (PCF).
“BASF and ENGIE have been partners 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 ensures a long-term supply of biomethane at competitive prices. We are pleased to have such a reliable partner in ENGIE,” said Matthias Dohrn, Head of Global Procurement at BASF.
Edouard Neviaski, CEO of ENGIE’s Global Energy Management & Sales, stated, “ENGIE and BASF’s collaboration is a story of green chemistry. Following our long-term Power Purchase Agreement in 2021, we are excited to partner again in the biomethane sector. This new deal aligns with our goal to sell 30 terawatt hours of biomethane per year by 2030. With Europe’s ambition to produce 35 billion m³ by 2030, we anticipate significant growth in BPAs.”
Biomethane is a renewable gas produced through the fermentation of organic waste from households, agriculture, or industry, significantly reducing greenhouse gas emissions compared to fossil resources.
