BASF has signed a Memorandum of Understanding (MoU) with Shenergy Group and its subsidiaries Shanghai Gas Co., Ltd and Shanghai Shenji Environmental Technology Co., Ltd to collaborate on the commercialisation and certification of biomethane in China. This partnership aims to promote sustainable solutions and accelerate the circular economy by integrating biomethane into chemical production and energy systems.
Under the agreement, Shenji will lead biomethane purification efforts at livestock farms and waste disposal sites, turning waste resources into usable biomethane. The purified biomethane will be certified and delivered via Shanghai Gas’s grid to BASF, where it will be incorporated into the company’s final products. This integration is expected to significantly lower the carbon footprint of BASF’s products and aligns with its global sustainability goals.
“Biomethane, as a green, renewable, and clean energy source, as well as a bio-based raw material, holds immense potential in replacing fossil resources,” said Dr. Jeffrey Lou, President and Chairman of BASF Greater China. “This strategic partnership marks a breakthrough for both parties in exploring the commercial application of bio-based raw materials and promoting sustainable development. It enables us to launch more diversified and lower-carbon-footprint products, supporting our customers in their green transformation.”
The collaboration represents BASF’s first ISCC+ certified biomethane partnership utilising a gas grid in China. ISCC+ certification ensures the traceability and sustainability of biomethane in its production and usage. BASF’s commitment to leveraging biomethane reflects a broader strategy to enhance the sustainability of its global product portfolio and provide customers with bio-based, low-carbon solutions.
Huang Dinan, Chairman of Shenergy Group, emphasised the partnership’s significance in driving the green transformation of the energy and chemical industries. “The strategic cooperation between BASF and Shenergy represents an important step in the green transformation process and lays a solid foundation for deeper collaboration in other fields. We look forward to engaging in global perspectives, advanced technologies, and excellent management experiences with BASF to promote the low-carbon transformation of energy and chemicals,” he said.
This initiative reinforces BASF’s commitment to sustainability by offering locally sourced, biomass-balanced products in Asia. “With this, we enhance our sustainable offerings and take a significant step forward on #OurPlasticsJourney with our customers,” said Matthias Scheibitz, Head of Sustainability at BASF Performance Materials.
