BASF, Shenergy Group join forces for biomethane commercialisation

Global chemicals and bioenergy major BASF has announced to have signed an MoU with China’s Shenergy Group through its subsidiaries Shanghai Gas Co. and Shanghai Shenji Environmental Technology Co. The three parties look for foster long-term collaboration in the commercialization and international certification of biomethane.

The objective of BASF and others is to promote the development of sustainable solutions and accelerating circular economy. Shanghai Gas serves as a comprehensive natural gas industry platform and the urban gas provider for Shanghai. Shenji specializes in the developing of waste resource utilization.

As per the agreement, Shenji will proactively undertake biomethane purification projects at livestock farms and waste disposal facilities. Meanwhile, based on the certification of biomethane projects, Shenji will work together with BASF to carry out pilot projects on the application scenarios of biomethane mass balance, and supply BASF with ISCC+ certified biomethane.

The purified biomethane will be delivered through the gas grid by Shanghai Gas. BASF then incorporates the biomethane into its final products, thus reducing the products’ carbon footprint (PCF).

“Biomethane, as a green, renewable, and clean energy source, as well as a bio-based raw material, holds immense potential in replacing fossil resources. Today, BASF and Shenergy enter into a strategic partnership, which marks a breakthrough for both parties in exploring the commercial application of bio-based raw materials and promoting sustainable development. It will enable us to launch more diversified and lower carbon footprint products, thereby supporting our customers in their green transformation.” said Dr. Jeffrey Lou, President & Chairman, BASF Greater China.

Huang Dinan, Chairman, Shenergy Group, held, “We hope to engage in profound exchanges with BASF in areas such as global perspectives, advanced technologies, and excellent management experiences, and work together to promote the green and low-carbon transformation of energy and chemicals.”

BASF said that this collaboration signifies the inauguration of its ISCC+ certified biomethane partnership through gas grid in China, highlighting the high-value utilization of bio-based raw materials in the chemical industry. It also establishes a strong groundwork for BASF’s future advancements in sustainable and innovative solutions.